Katherina Reiche is the Economy and Energy Minister of Germany. This month she wrote a guest column for the Frankfurter Allgemeine Zeitung.
Let’s stop deluding ourselves about energy policy
However, in 2025, the share of renewables in total energy consumption was just under one-fifth…For years, we have lulled ourselves into a false sense of security with ambitious goals. 80% of electricity from renewables by 2030, climate neutrality by 2045—impressive figures that soothe our guilty consciences. But while we clung to these goals, electricity prices skyrocketed…
Yes, wind and sun don’t send a bill. But the overall system certainly does: EEG costs, capacity reserves, grid reserves, re-dispatch costs, grid subsidies, subsidies for lowering energy prices—all of this adds up to system costs of over 36 billion euros per year…
We’re spending nearly three billion euros just to curtail wind turbines and solar plants because the grids can’t handle the electricity. There’s no other industry that receives financing guaranteed for over 20 years and even collects compensation when its product isn’t needed. This can’t go on.
DB2