Is eco-fanaticism killing the German energy sector?


Data from the operator of the French energy network RTE (Réseau de Transport d’Électricité) show that since mid-April, i.e. the month in which the last three reactors were shut down in Germany, our western neighbor has become almost completely dependent on electricity imports from France . Meanwhile, the Federal Network Agency, which closely monitors the availability of nuclear capacity in France, warns that French reactors will have to reduce production due to the expected drought. Germany is therefore facing a catastrophe of electricity shortages caused by eco-fanaticism.

Threats to German competitiveness

Markus Krebber, head of RWE, one of the largest energy companies in Europe, believes that Germany will soon face a shortage of electricity. In his opinion, such a situation is a serious threat to Germany as an industrial center, because it may cause some companies to be forced out of the country, taking much-needed jobs with them. “Germany’s prosperity is based on strong industry,” Krebber told Bild. “The energy shortage leads to high prices, which threatens Germany’s competitiveness as an industrial location. We are already seeing the first signs of de-industrialisation.” Krebber’s harsh forecasts coincided with the shocking news that Germany was in recession. German entrepreneurs blame the bad economic forecasts on the government’s eco-fanaticism, which caused the closure of the last functioning nuclear power plants. In their opinion, instead of saving the economy, the German government is focusing on finding suppliers of renewable energy from solar and wind power plants. The intermittent nature of renewable energy and its susceptibility to sudden drops during cloudy or windless periods mean that the German power system remains vulnerable to electricity shortages and price volatility. Krebber warns that this could have a devastating impact on German industry, which is trying in vain to support the country’s flagging economy. “As an industrial region, Germany has a serious problem: we don’t have as much energy available as we need,” Krebber told Focus. “This gap leads to high prices and therefore legitimate concerns about competitiveness.”

Dangerous green politics

The current economic situation and voters’ concerns about the cost of moving away from fossil fuels work in favor of German right-wing parties. The Alternative for Germany (AfD), which denies that human activity is causing climate change, is rising in the polls. AfD leader Tino Chrupalla said an increasing number of voters were seeing that the policies of the Greens (Scholz’s coalition partner), who want to move away from hydrocarbons as soon as possible, have brought “economic war, inflation and deindustrialisation.” “We’re the only party that wouldn’t form a coalition with the dangerous Greens,” Chrupalla asserts. Christian Kullmann, CEO of chemical group Evonik, joined Krebber in criticizing what he called the government’s “energy policy disaster” and warning of its impact on German industry. “In Germany, we pay the highest prices for electricity and energy in the world, and every industry, every economy lives and depends on reasonable, affordable, available energy supplies,” Kullmann said in one of the interviews. He warned that Germany, historically an engineering hub, would no longer produce bulk goods. “We will probably say goodbye to strategic industries in the near future – and I’m not talking about a future too far away. Germany as a business location is under enormous pressure.” Former RWE CEO Roland Farnung believes that “the energy policy currently adopted by the federal government is practically an open-hearted operation with significant risks for German companies and jobs located here.” .

There is no going back to nuclear energy

According to Krebber, to combat Germany’s vulnerability to electricity shortages, there must be “massive investment” in green energy. But even with massive investments, German energy producers must continue to modernize the entire national power system at a record pace. “There is desire and money [na inwestycje w zieloną energię – przyp. red.]. In order to actually make investments, a solid long-term framework is needed that creates incentives, not obstacles,” notes the head of RWE. Energy experts say that Germany will eventually have to return to nuclear energy if it wants to phase out fossil fuels and achieve its goal of becoming greenhouse gas neutral in all sectors by 2045, as wind and solar power will not fully cover demand. The German government dismisses these concerns, arguing that thanks to an integrated European electricity grid, Germany can import energy when needed while remaining a net exporter.

Recession instead of growth

Fears about the condition of the German economy are justified by recent data. Last month it was revealed that Germany had plunged into recession after an unexpected contraction in the first quarter of this year. Germany’s gross domestic product fell by 0.3% between January and March. – according to data published by the Federal Statistical Office. These figures are a major blow to the German government, which has boldly doubled its growth forecasts for this year after the dreaded winter energy crisis fell through. The government had projected GDP to grow by 0.4%. (compared to the 0.2% growth expected at the end of January) this forecast will probably have to be revised downwards. The German newspaper Bild reported that the country’s economy “collapsed” by 0.5 percent. in the winter quarter of 2022. The bad news for Germany comes at a time when the International Monetary Fund was forced to admit that it had miscalculated its forecast for the post-Brexit UK economy now set to avoid recession, contrary to the predictions of all those who said membership in the EU is an economic necessity. Source:

Click to rate this post!
[Total: 0 Average: 0]
Next Post

Fostering Growth with Love: CoinEx Charity Scholarships Help Fulfill Dreams in Vietnam

On May 27, 2023, CoinEx Charity partnered with a Royal Melbourne Institute of Technology (RMIT) charity in Vietnam to kick off the first ever “CoinEx Charity Dream Scholarship” charity activity. Started by CoinEx Charity, this charitable program aims to provide financial support and educational resources to underprivileged students around the […]

Subscribe US Now