Germany has earmarked 200 billion euros ($220 billion) to fund industrial transformation between now and 2026, including climate protection, hydrogen technology and expansion of the electric vehicle charging network. 1
Now, after pouring billions of those dollars into green energy, Germany is facing economic calamity, including potential collapse should Russia shut off gas supplies. The collapse comes after Germany unveiled their plan to spend $220 billion to transfer all their energy to renewable sources. Russia's natural gas cuts are occurring as households are suffering from CO2 price increases and a rise in inflation. Germany's economy relies on Russia for 35% of its natural gas supply. 2
Presently faced with massive energy shortages and the prospects of a very cold winter coming up, Germany is reconnecting a coal fired power plant to the energy grid
Germany joins an increasing number of European countries on the brink of economic collapse, with the group 7 summit announcing their plan to resort to fossil fuels. Liquified natural gas is being used across Europe as an attempt to ease high prices and shortages.
Even before the latest gas supply cuts, 15% of German industry was already cutting production. Many others are planning to or were considering moving. People are starting to wonder if this might be a permanent loss for the famous German industrial power. According to a recent survey of 3,500 companies, the energy intensive industries are suffering so much they have to move or shut down. One out of every six German industrial companies feels forced to reduce production due to high energy prices. Nearly a quarter of the companies forced to reduce production have already done so, and another one-quarter are in the process of scaling back production due to sky high energy prices. 3
Presently faced with massive energy shortages and the prospects of a very cold winter coming up, Germany is reconnecting a coal fired power plant to the energy grid. The move was preceded by the federal government implementing an emergency ordinance to allow mothballed oil and coal powered plants to open back up until April of next year, as the country faces a shortfall in its energy amid the conflict in Ukraine.4
While the government has allowed for the return to coal power, it has so far refused to abandon its decision to shut its remaining nuclear power plants by the end of the year, a move that followed years of anti-nuclear policies from former Chancellor Angela Merkel following the Fukushima meltdown in Japan.
Presently, the biggest concern facing Germany is potential blackouts during the winter, which could lead to dangerous situations, particularly for elderly people, However, some cities have already begun putting rationing measures in place, including Hanover, which became the first major European city to place limits on hot water use in public buildings. 4
Germany is in a world of trouble, and the cut-backs are just starting
In Hanover and Munich people won't get hot water in museums, swimming pools, sports halls and other public buildings. In Berlin, the lights around public buildings and monuments and the fountains will also be switched off. Germany is in a world of trouble, and the cut-backs are just starting, mid-summer to avert the tragedy that will be winter, if Russia blocks all gas. As Russia cuts gas to Germany, Hanover residents are forced to take cold showers. 5
So much for Germany's much-vaunted Energiewende, or clean-energy transition. For years, the transition to renewable energy has been sold as an expression of modernity--of new technologically advanced and environmentally sustainable Germany. It's one of the few policies that politicians have shown any enthusiasm for in recent years. Now that Energiewende is going into reverse--with a Green Party minister leading the charge back to one of the most polluting forms of energy--its shortcomings are impossible to ignore. 6
Germany saw a record price for households in 2021. It was the sixth year in a row with an increase. Electricity in 2021 costs double what it cost 20 years ago. Much of the price increase over the past two decades is the result of the renewable energies feed-in act. 7
President Biden's net zero goal will result in higher electricity prices, instability to the grid and higher taxes to pay for the tax incentives renewable energy is demanding despite tens of billions of lavish subsidies and mandates already in place. Sounds like he is doing his best to follow Germany's lead.
References
"Germany to spend $220 billion for industrial transformation by 2026," reuters.com, March 6, 2022
Reagan Reese, "Germany went all in on green energy. Now it its economy is on the brink of collapse," dailycaller.com, July 5, 2022
Rafe Champion, "German industry has started shutting down: one-third plan or have started to reduce production," climate-science.press, August 7, 2022
Kurt Zindulka,"Germany to reconnect first coal power plant to energy grid," sgtreport.com, August 4, 2022
Joanne Nova, "German cities start to turn off public hot water, lights, fountains, and may cancel beer too," joannenoav.com.au, July 31, 2022
Sabine Beppler-Spahl, "The unravelling of Germany's green agenda," spiked-online.com, July 4, 2022
P. Gosselin, "German household electricity prices reach new record high in 2021—share of green electricity falls," wattsupwiththat.com, January 11, 2022
Jack Dini is author of Challenging Environmental Mythology. He has also written for American Council on Science and Health, Environment & Climate News, and Hawaii Reporter.
