An overcommitment to renewable energy by Germany has already had negative consequences.
Marian Tupy writes:
Recently, I came across a report by Fritz Vahrenholt, Professor in the Department of Chemistry at the University of Hamburg, entitled Germany’s Energiewende: a disaster in the making. It made for interesting reading.
In the aftermath of the Fukushima disaster in 2011, the German government decided to shut down its 19 nuclear power stations, which supply nearly 30 percent of the country’s electrical power, by 2022. Driven by social pressure, the German government now plans to get rid of all fossil fuels, thus increasing the share of renewable energy to 95 percent of total energy supply by 2050.
To accomplish its goal, the government has introduced a “renewable” levy on power bills, thus doubling the price of electricity. This additional cost amounts to €25 billion ($26.8 billion) annually. In a nod to rationality, the government has exempted energy-intensive industries (steel, copper and chemicals) from the renewable levy, thus maintaining their competitiveness.