Germany facing massive power gap

Investment Analysis Clubs Macro Economic Trends and Risks
1

This would seem to come under the category of ‘you can’t get there from here’.

Germany has set aside more than €260 billion ($275 billion) to deal with the immediate risks of an energy crisis triggered by Russia’s war in Ukraine, but the ultimate fix will be much costlier — if the country can pull it off at all.

The pending price tag for future-proofing the country’s energy system is projected to amount to over $1 trillion by 2030, according to BloombergNEF. The costs include investments in upgrading power grids and above all new generation to manage the phase out of nuclear and coal plants, handle increased demand from electric cars and heating systems, and meet climate commitments.

The transition will require the installation of solar panels covering the equivalent of 43 soccer fields and 1,600 heat pumps every day. It also needs 27 new onshore and four offshore wind plants to be built per week…

DB2

4 Likes
2

This is going to be very profitable for the Germans.

Do you understand why this would be profitable for the Germans?

1 Like
3

Ok, but Germany had planned to phase out coal and nuclear from long before the Ukraine war. Short term lng terminals should provide their needs replacing Russian gas but at higher cost.

Natural gas is cleaner than coal but still a fossil fuel. Its use was and is a bridge while green sources are built. This not new. And has been a narrow path to follow from the decision to shut down nuclear.

Electric vehicles may not have been anticipated in the earlier plan but even they could have been foreseen by think tanks. And note that green gasoline, diesel, and jet fuel probably from fermentation ethanol is being considered. Electric or hydrogen may not be the only solutions to green energy.

2 Likes