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**Hugh** · 04-02-2022, 09:43

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Originally Posted by nomadking

And how exactly would gas storage solve anything?

Germany only has capacity for a quarter of their annual consumption, and it has to be filled up at the new higher costs. A quarter of Germany's gas storage is owned by GazProm.

https://www.rpsgroup.com/insights/en...ansition-mix/#

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In September 2021, due to a sustained period of very low winds, the current renewable energy supply was unable to meet demand.

Coinciding with an extreme spike in spot market gas prices, making gas supply uneconomical, the UK had to start up one of two remaining coal–fired power stations to meet electricity demand.Stored natural gas currently allows countries to meet their seasonal power demands, for instance in winter when gas demand is likely to exceed newly generated supply. However, in the future, it’s also likely to be required to help meet power demands during the intermittent outages as described above.

Although clearly not the case at present, gas storage also has an essential role in rebalancing an oversupplied market. Storage means that a valuable commodity can be ‘demand–ready’ and allow for more sustainable production and transport from ‘advantaged’ basins to create a more equitable supply. Thus, it also has a crucial role to play in the security of gas supply in the context of rising geopolitical risks and trade tensions.

https://www.eua.org.uk/uploads/57285500B54F4.pdf

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The insurance provided by gas storage not only enhances physical gas security, but insulates those countries from the vagaries of the global gas market and its associated price risks. In short, gas storage is a vital national asset which contributes to the economic wellbeing of the majority of European member states…

... The Benefits of Gas Storage (“why does it matter?”)

Gas storage provides a multitude of benefits to the UK energy market, in particular it:
• delivers physical gas and is more reliable than other sources of gas supply as it is not exposed to the same risk of being diverted to other markets
• is located close to, and often embedded in, the UK gas market and so can react quickly to demand or supply shocks
• provides delivery support for other sources of supply
• reduces the average cost of consumers’ bills
• reduces the investment needs of the national transmission system and importantly for the physical security of supply
• is available to be called upon by National Grid in a Gas Emergency

However, not all of the value associated with these benefits is captured by the current
commercial arrangements between storage providers and market participants.
These include (i) the contribution it makes to energy security of supply, (ii) the impact it has on reducing consumer bills and (iii) the impact gas storage has on avoiding the need for costly network investment.