Germany shut down its last nuclear power plants in early 2023, including Emsland, Isar 2, and Neckarwestheim, completing its nuclear phase‑out.

The phase‑out was tied to the Energiewende strategy to expand renewables and cut emissions, a policy reinforced after Fukushima and rooted in a long‑standing anti‑nuclear movement.

Public support for the post‑Fukushima phase‑out was initially strong, contributing to the political consensus behind the decision.

Germany’s climate policy targets include net‑zero by 2045 and generating 80% of electricity from renewables by 2030.

Germany also framed the nuclear exit as part of a broader shift to “green energy” by 2035.

The immediate consequence of the nuclear exit was higher fossil fuel use, with fossil consumption rising after the phase‑out.

Germany leaned more on coal plants to secure winter supply, complicating near‑term emissions goals.

Analysts have warned of a potential supply gap of about 4.5 GW between 2022 and 2025, though the government has insisted security of supply remains guaranteed.

Electricity prices rose markedly, with German household power prices about 80% higher than in France, and industry has reported competitiveness pressures.

High energy costs have hit households and industry, with some manufacturers considering moving production abroad due to economic troubles.

Industrial electricity demand fell in 2023 and German power prices were about 160% higher than in 2019, underscoring the strain on the market.

Even so, solar and wind additions helped fill roughly the 8.1‑GW generation gap left by the shuttered reactors.

By 2023, renewables generated 53.4% of Germany’s electricity, with wind alone providing 28.6% of total generation.

Russia’s invasion of Ukraine upended Germany’s energy security, with Russia cutting gas supplies and Berlin rapidly reducing dependence on Russian fuels.

Between early 2022 and later that year, Germany cut its dependence on Russian oil from 35% to 12%, gas from 55% to 35%, and coal from 50% to 8%.

To safeguard supply, Germany reduced gas use in power generation, considered keeping coal plants online longer, and warned of tight winter supplies while activating a national gas emergency plan.

Berlin moved to diversify through LNG and wider imports, including building LNG terminals and pursuing new supplies from partners such as the United States and Qatar.

Germany also signed a 15‑year gas deal with Qatar and launched an energy partnership with the United Arab Emirates to further diversify supply.

The energy shock drove price surges and recession risks, with the OECD forecasting a 0.7% contraction and the government deploying a large price‑cap package to cushion consumers.

Public opinion on nuclear has shifted during the crisis, with 64% of Germans supporting a nuclear restart and 60% believing the nuclear exit was a mistake.

Polling indicates 67% support a five‑year extension of nuclear plants and 41% favor building new reactors, and the Bavarian prime minister has asked to reconsider the nuclear exit.

Opposition figures, including the Christian Democrats, have urged reconsideration, but the federal government has ruled out reinstating nuclear due to cost and construction timelines.

Some accounts still report no broad societal push to bring reactors back online, with policy focus remaining on renewables expansion.

Germany is pursuing large‑scale renewable build‑out to replace nuclear and cut fossil fuels, targeting 215 GW solar, 110 GW onshore wind, and 30 GW offshore wind by 2030.

A €28 billion plan approved by the European Commission aims to accelerate wind and solar expansion through 2026 on the path to 80% renewable electricity by 2030.

Grid bottlenecks are a critical challenge, and Germany plans major transmission upgrades, including north‑south reinforcements and new interconnections.

TenneT seeks funding for extensive grid investments and plans about €100 billion in upgrades in Germany and the Netherlands, while Amprion is committing €22 billion by 2027 and has contracted thousands of kilometers of new cables.

Germany is also investing heavily in hydrogen as a flexibility and decarbonization tool, planning to spend €20 billion by 2027, subsidize 10 GW of hydrogen‑ready turbines, and build a 10,000‑km hydrogen pipeline network by 2032.

Despite economic headwinds, Germany cut greenhouse gas emissions by 10.1% in 2023 and remains committed to net‑zero by 2045.

Germany shut down its last nuclear power plants in early 2023, including Emsland, Isar 2, and Neckarwestheim, completing its nuclear phase‑out.

Title:

Content: Home / News / World /  Germany quits nuclear power; shuts final 3 plants
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Germany has shut its final three nuclear plants, marking the end of the country's end of nuclear era that has spanned more than 60 years.

Nuclear power has long been contentious in Germany.

The move has come as Germany's eyes achieve its green goal. Steffi Lemke, Germany’s Federal Minister for the Environment and Consumer Protection and a Green Party member, "The position of the German government is clear: nuclear power is not green. Nor is it sustainable".

Closure of three nuclear plant's history:

Germany shut three plants-- Emsland, Isar 2, and Neckarwestheim, representing the culmination of a plan set in motion more than 20 years ago.

During the 1970s, a strong anti-nuclear movement emerged in Germany. The movement gave birth to the green party, which is now part of governing coalition.

However, it was in the 2000s the German government pledged to phase out nuclear power and start shutting down plants.

But in 2009, a new government came to power and it seemed brief as if nuclear would get a reprieve as a bridging technology to help the country move to renewable energy.

Then Fukushima happened. In 2011, an earthquake and tsunami caused three reactors of the Fukushima Daiichi power plant to melt down.

Three days later then-Chancellor Angela Merkel who was previously pro-nuclear, announced Germany would accelerate a nuclear phase-out, with older plants shuttered immediately.

Russia's invasion of Ukraine provided another plot twist.

Germany isn’t the only country committed to walking away from nuclear — Italy gave up the technology in 1990, and Lithuania recently struck a deal to dismantle its Soviet-era reactors, which have sat idle for over a decade. But in many advanced economies, nuclear is experiencing a resurgence.

On Sunday, Finland will start regular power production at Europe’s newest and biggest reactor. The 1,600-megawatt Olkiluoto-3 unit that faced years of delays had been planned to enter commercial production on Monday. France is planning to build at least six new reactors by 2050 as well as experiment with smaller, modular ones. The UK has similar ambitions. And even in Japan, after a decade of paralysis following the nuclear accident in Fukushima, the public is warming up to the use of nuclear power. The Japanese government wants to restart reactors that have sat idle since the disaster and to extend the lifespan of existing units.

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The phase‑out was tied to the Energiewende strategy to expand renewables and cut emissions, a policy reinforced after Fukushima and rooted in a long‑standing anti‑nuclear movement.

Title:

Content: Three nuclear-fired power plants will be taken off the grid in Germany on Friday as part of the country's plan to end atomic power.

"The nuclear phaseout makes our country safer and helps to avoid radioactive waste," said Federal Environment and Nuclear Safety Minister Steffi Lemke.

"It is now essential to ... advance the search for a final repository for high-level radioactive waste as well as permanent solutions for low- and medium-level radioactive waste," the environment ministry said.

Former German Chancellor Angela Merkel speeded up the phaseout following the 2011 Fukushima accident in Japan.

Friday's shutdown affects power plants in Brokdorf in Schleswig-Holstein, Grohnde in Lower Saxony and Gundremmingen C in Bavaria.

Germany's remaining three nuclear plants — Emsland in Lower Saxony, Isar 2 in Bavaria and Neckarwestheim 2 in Baden-Württemberg — will be closed by the end of 2022 "at the latest," the environment ministry said.

"Since 2011, Germany has been drawing a line under a highly problematic technology in an orderly, reliable process," Lemke said.

Nuclear accounts for about 10 percent of Germany's electricity production. The shutdown has sparked criticism as Germany will have to dramatically ramp up renewable energy and has also increased its reliance on highly polluting coal-fired power.

"Security of supply in Germany continues to be guaranteed," said Robert Habeck, federal climate and economy minister. He added that reliable and "sustainably generated electricity" is a "central requirement for aligning our economy and industry toward climate neutrality."

That stance puts Berlin at loggerheads with France, where nuclear is the largest element of its energy mix (and also helps supply Germany).

EU Internal Market Commissioner Thierry Breton said in September that existing nuclear plants, which provide low-carbon electricity essential to the green transition, can be kept running "for two, five, 10 years," adding: "Why deprive ourselves of this production capacity?"

France is planning to scale down the share of nuclear in its electricity mix from 75 percent to 50 percent by 2035, but President Emmanuel Macron said in November that France "will restart the construction of nuclear reactors" while "continuing to develop renewable energies."

Macron also said France will invest €1 billion into research and development, notably into small modular reactors.

Belgium recently decided to shut down all its nuclear power plants by 2025, but plans to invest €100 million in new generation nuclear reactors and research.

More from ... Louise Guillot

Public support for the post‑Fukushima phase‑out was initially strong, contributing to the political consensus behind the decision.

Title:

Content: German Economy Minister Robert Habeck ruled out renewing the country ’ s last three nuclear plants to save gas, saying the plant would only save up to 2 percent of natural gas use.
In a public discussion with the public on the government ’ s Open Day, Haberk said such savings would not be enough to reopen the debate on decommissioning nuclear power because there was a consensus on the issue.
After the 2011 Fukushima nuclear disaster in Japan, with the support of a majority of the German people, former German Chancellor Angela Merkel issued a bill to stop using nuclear power by the end of the year; but due to the reduction of natural gas supply in Russia, people are worried about the energy crisis this winter, attitudes have changed, and the three-party coalition is also divided on the issue.
"It was the wrong decision to do so because there was not much savings," said Mr Harbaugh.
In the 1970s and 1980s, Harburg's Green Party began as an anti-nuclear movement.
On the other hand, Finance Minister Christian Lindner of the Free Democratic Party reiterated his position that extending the life of nuclear power plants for a limited period of time would be better than reusing coal-fired power.
“We shouldn ’ t be too critical, we should keep all possibilities open, ” Lindner said, adding that in the current situation, he was open to extending nuclear power“ for a few years. ”
In addition to the debate over gas-saving measures, Haberke said he was open to extending the life of one of Bavaria ’ s nuclear plants if stress tests showed that it was necessary to ensure grid stability and power supply in winter.
German Chancellor Olaf Scholz said the results of the stress tests should be available by the end of the month or early next month, when a decision will be made.
(Translator: Zheng Shiyun / Authored by: Lu Yingzi) 1110822
# Hubble # Save # Nuclear Power Plant # Natural Gas # People

Germany’s climate policy targets include net‑zero by 2045 and generating 80% of electricity from renewables by 2030.

Title:

Content: Advertisment

Germany Achieves 10% Reduction in Greenhouse Gas Emissions, On Track for 2030 Climate Goals

Germany achieves a 10.1% cut in greenhouse gas emissions in 2023, marking significant progress in its journey towards environmental sustainability.

Nimrah Khatoon
New Update

Germany marked a significant milestone in its environmental efforts, reporting a 10.1% decrease in greenhouse gas emissions in 2023, as confirmed by official data. Vice Chancellor Robert Habeck, doubling as the economy and climate minister, announced that with about 673 million tons of greenhouse gases emitted last year, Germany is poised to meet its ambitious 2030 target of reducing emissions by 65% relative to 1990 levels. This progress is attributed to the robust expansion of renewable energy sources and a strategic move away from coal and gas, despite the economic challenges faced by businesses and consumers.

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Strategic Expansion of Renewable Energy

The Federal Environmental Agency highlighted the country's "very successful expansion of renewable energies" as a pivotal factor in the emission reduction. Germany's focused efforts on solar and wind power and other renewable sources have not only contributed to the decline in emissions but also positioned the country as a leader in renewable energy adoption. However, the agency also pointed out that more efforts are needed, especially in the transport sector, to continue this positive trend.

Challenges and Projections

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The ministry led by Habeck noted that while projections for the coming years are promising, showing a potential decline in emissions by nearly 64% by 2030 compared with 1990, challenges remain. The transport sector, in particular, requires significant advancements in electric mobility and a reevaluation of subsidies. The country's economic performance, impacted by high energy prices and global economic instability, underscores the need for continued dedication to environmental goals amidst adversity.

Looking Forward

Germany's commitment to achieving net-zero emissions by 2045 remains steadfast, with renewable energy playing a crucial role in this journey. The nation's progress, including the notable decline in greenhouse gas emissions in 2023, serves as a testament to its capacity for green transformation. As Germany continues on this path, the global community watches closely, recognizing the potential ripple effect of its actions on international climate policy and the broader fight against climate change.

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Germany also framed the nuclear exit as part of a broader shift to “green energy” by 2035.

Title:

Content: Chernobyl and the war: how the events in Ukraine prompted Germany to abandon nuclear energy
Greenpeace activist at a protest against nuclear power in Berlin, Germany.
Photo by REUTERS / Nadja Wohlleben
The end of the atomic age.
This weekend, Germany, as promised, shut down its last nuclear power plants.
On Sunday night, the Germans decommissioned three stations: Izar 2 in Bavaria, Necarwesteim-2 in Baden-Württemberg and Emsland in Lower Saxony.
Nuclear power plants, which have recently produced about 5% of the country ’ s electricity, have been shut down as part of the so-called “energy transition. ”
Its goal is to completely switch to green energy by 2035, that is, to produce electricity from renewable sources.
Read also:
The decision to finally abandon the peaceful atom was given to the German authorities not easy.
A week ago, in political Berlin, there were calls to postpone the closure of the reactors for at least a few months, so as not to jeopardize the security of energy supply in the country.
Moreover, the temporary continuation of the work of the nuclear power plant of Chancellor Olaf Scholz was requested by both the opposition Christian Democrats and the liberals included in the ruling coalition.
Most Germans did not support the closure of the nuclear power plant.
According to sociologists, about 60% of the country ’ s residents called the government ’ s decision to abandon the peaceful atom wrong.
The reason is obvious: people are afraid of further increases in electricity prices, which have literally exploded.
Farewell to the atom: the Ukrainian factor
In fact, the decision to close all German nuclear power plants was made in 2011 by the government of Angela Merkel after the accident at the Japanese nuclear power plant Fukushima.
But the discussion about the abandonment of nuclear power began much earlier — in 1986, after the disaster at the Chernobyl nuclear power plant.
The accident sparked widespread protests against the use of the peaceful atom, and after Chernobyl, the now ruling Social Democratic Party announced that it would support the closure of all German nuclear power plants and enshrined this position in its political program.
Events in Ukraine also affected the timing of the closure of the nuclear power plant.
Germany planned to shut down all its nuclear power plants by the end of 2022.
However, after a full-scale Russian attack on Ukraine, the operation of the reactors was decided to extend for several more months.
Germany, which took the course of abandoning all Russian energy resources, was afraid of problems with energy supply.
Bavarian exception: will one of the richest lands in Germany be allowed to restart nuclear power plants
In the final rejection of the peaceful atom, it seems, not all German politicians believe.
At least regional.
The prime minister of Bavaria - one of the richest German states - Markus Seder has already said that he will ask the federal government to reconsider its decision.
And this is a few hours after the closing of the last nuclear power plant!
Seder wants the Bavarians to make an exception – allowed them to continue to operate the nuclear power plant “Izar-2 ”, located on the territory of the earth.
Like, now, in times of energy crisis, to abandon nuclear energy is not only risky, but also stupid.
That can be done a little later.
"Bavaria demands that the federal government take responsibility for the continued operation of nuclear power.
Until the crisis is over and the country has switched to renewable energy, we must use all forms of energy before the end of the decade.
Anyone who, like the ruling coalition, hopes that the next winter will be as mild as the previous one, acts extremely naive and careless for an industrial country like Germany, ” said Seder.
And he promised that in the case of a positive decision from Berlin, Bavaria is ready to take responsibility for the operation of the nuclear power plant.
The Bavarian prime minister thought about other lands.
It requires the government to develop and submit a plan for the reactivation of disconnected nuclear power plants.
If necessary, nuclear power plants will be able to resume their work quickly.
Official Berlin has already responded to the calls of the Bavarian Prime Minister – the Minister for Environmental Protection advised Zeder not to engage in political populism.
Non-peaceful atom: Germany wants sanctions against Russian nuclear energy
On the day of the closure of their own nuclear power plants, the Germans also mentioned the nuclear energy of the aggressor country of Russia.
Vice-Chancellor and Minister of Economy of Germany Robert Gabeck proposed to impose sanctions against the nuclear industry of the Russian Federation.
At the EU level.
For example, to include penalties in the next, already eleventh, sanctions package, the development and coordination of which the Europeans will begin in the near future.
“We have seen that Russia purposefully uses dependence in the energy sector for pressure.
Therefore, the federal government called on the European Commission to impose sanctions on the civilian nuclear sector.
Nuclear technology is an extremely sensitive area, and Russia can no longer be perceived as a reliable partner here, ” Gabek said.
What sanctions are we talking about – the politician did not specify.
However, in early April, after a visit to Ukraine, he proposed to impose sanctions against states that buy uranium from Russia for their nuclear power plants.
Not immediately, but after the transition.
“It is important to start and not be afraid of decisive actions in this area, ” Gabek explained.
The EU ’ s dependence on Russia ’ s nuclear sector is really serious.
About 20% of the uranium for their nuclear power plants EU countries receive from Russia.
Bulgaria, Slovakia, Hungary and the Czech Republic are completely dependent on these supplies, that is, 100%.
On the sale of uranium in the European Union, Russia earns 450 million euros a year.
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The immediate consequence of the nuclear exit was higher fossil fuel use, with fossil consumption rising after the phase‑out.

Title:

Content: In early 2023, Germany shut down its last nuclear power plants, so this winter will be Germany ’ s first “nuclear-free winter ”. Despite the German government ’ s vow to modernize its energy system and develop renewable energy, Germany ’ s fossil fuel consumption is higher and its power system is dirtier.
Commenting on Germany ’ s electricity problem, Reuters columnist Gavin Maguire wrote that the country ’ s electricity problem began with a gradual decline in the share of nuclear power in Germany ’ s power generation structure. In 2014, the contribution of nuclear power to Germany ’ s total electricity supply fell by only 6% in 2022, and finally dropped to zero after the last eight reactor outages in 2023.
According to the think tank Ember, Germany's last eight nuclear reactors generated about 8.1 gigawatts (8,000 megawatts) of electricity, a gap that was filled by solar and wind capacity.
It seems to be okay.
However, as solar power (Germany ’ s second largest clean power after wind) suffers from reduced sunlight this year, power generation will fall sharply this winter, and the total amount of clean electricity in Germany will also decline, but winter has always been Europe ’ s peak electricity consumption (heating demand), so German power producers are forced to increase the amount of electricity generated from fossil fuels such as coal and natural gas. of emissions.
According to the data, in the first nine months of 2023, Germany ’ s total electricity generation fell compared to last year, including clean electricity and fossil energy power; clean electricity fell by 5.6% compared to the same period in 2022, and fossil fuel power generation fell by 21%.
In other words, this year has been the most electricity efficient year in Germany since 2017.
But don ’ t think that ’ s a good thing, because Germany ’ s industrial electricity demand has fallen this year, and the economy has certainly followed suit.
Why is that so?
Data from the London Stock Exchange shows that the high price of electricity in Germany is a key factor. Compared to 2019, the price of electricity in Germany is 160% higher this year, although it is much better than the highest price last year (electricity prices soared last year due to the Russian-Ukrainian war, this year has fallen), but the German industry is still unwilling to pay.
According to data from the London Stock Exchange (LSEG), German chemical and fertilizer production (previously produced using abundant and cheap natural gas) has fallen to its lowest level in more than a decade in 2023 as producers cut production.
Production of cars, steel, batteries and turbines has also been cut, causing Germany, Europe ’ s largest economy, to experience a rare export slump this year.
In order to support the German industrial recovery, the German government asked the power companies to suppress the cost of electricity, and actively increase the production of cheap renewable energy, did get some results, but after entering the autumn, the sunshine time reduced, Germany September to December's total solar power, must be more than 80% lower than the peak.
Since solar power has accounted for more than 20% of Germany ’ s total electricity generation each month in the past five months, such a serious decline in clean power production will inevitably lead to a tight overall electricity supply; in order to make up for the shortage of solar power, Germany can only maximize the use of wind power, wind power production in Germany will increase in winter.
In order to supplement the intermittent problem of wind power and ensure that the total generation of electricity rises as demand grows, power companies have to increase the generation of coal and gas, which can be controlled by power plants to balance the needs of the national electricity market.
Speaking of which, it is clear that Germany will have to rely more on fossil fuels to generate electricity, and its carbon emissions will inevitably increase.
In order to determine its ideal of a non-nuclear homeland, Germany has caused more pollution, and the cost of electricity is still high, which has hit the German industry.
In August of this year, economists criticized "Germany's economic recession is already the sick man of Europe", which is all related to the abandonment of nuclear power.
German power mix may get dirtier for 1st non-nuclear winter
# Germany # Electricity # Dirty # Carbon # Solar

Germany leaned more on coal plants to secure winter supply, complicating near‑term emissions goals.

Title:

Content: Germany will go to an unpopular measure for the sake of heat in the winter
The German authorities will return to work coal thermal power plants for the sake of uninterrupted power supply in the winter
The German government has decided to return to work several coal-fired thermal power plants (TPPs) in order to ensure uninterrupted power supply during peak periods of demand in the coming winter.
This is reported by Bloomberg.
We are talking about the permission to resume work at the stations owned by the energy companies RWE and LEAG.
As specified in the Ministry of economy and climate protection, this unpopular in the context of the desire of the German authorities to achieve zero carbon emissions measure should help the country to save natural gas and prevent interruptions in energy supplies during the heating season.
At the same time, experts warn that the decision of the Bundestag to return to work “dirty ” TPPs risks complicating the achievement of the country ’ s climate goals, including a complete abandonment of coal generation by 2030.
Since 2020, such energy facilities began to emit much more greenhouse gases into the atmosphere.
So, according to the Federal Agency for Environmental Protection, by the end of 2022, the volume of emissions of harmful substances approached the mark of 250 million tons, although a few years ago they were at the level of 209 million.
The return to operation of several German coal-fired power plants is associated with a sharp reduction in the supply of Russian energy resources, including pipeline gas.
This forced the German government to rely on burning coal to produce electricity.
The situation with the stability of power supply in the country is also affected by the phased decommissioning of the remaining nuclear reactors in Germany.
In the first half of July, Reuters reported on a number of challenges that the German authorities are at risk of facing on the way to achieving carbon neutrality by 2050.
For a more active transition to hydrogen energy, the country needs to lay 1,800 kilometers of converted and new pipelines, which will require significant financial support from the German and European authorities.
However, even after that, Germany will have to import at least half of the required consumption rate of this type of fuel from abroad.
The good tape is deactivated.
Welcome to the real world.

Analysts have warned of a potential supply gap of about 4.5 GW between 2022 and 2025, though the government has insisted security of supply remains guaranteed.

Title:

Content: Alert
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German manufacturing and energy transition are lame.
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Eurozone growth slows below expectations in second quarter
“Being the Chancellor of Germany after Merkel is like being in Schenn.
Connery later played 007. "The Economist" analogy. September 26 German election, will bring two definitive results: one is that Prime Minister Merkel, who has been in power for 16 years, will step down, and the other is that whoever becomes the successor, will face three major challenges in the German economy.
Recently, the euro has hovered at a nine-month low against the US dollar. The Wall Street Journal interpreted this as a market bet that the euro area recovery will be slower than the US.
Germany, the largest economy in the euro zone, is to blame: the German economy grew by 1.6% in the second quarter of this year, which was lower than market expectations, and “Germany ’ s economic rebound is at risk, ” Bloomberg said.
Germany ’ s weak economic rebound stems from the epidemic and shortage of raw materials in the manufacturing sector.
Volkswagen (VW), Europe ’ s largest automaker, reported a 19% drop in global car deliveries in July, the first monthly decline since the year.
The Munich-based Ifo Institute noted that German business confidence fell more in August than economists had predicted.
“The situation is actually getting worse, ” said Clemens Fuest, the director of the institute.
The first export of machinery and equipment to China
Transformation is urgently needed to remain unique
But the shortage of raw materials is only a short-term problem, and in the long run, the German economy has three structural challenges.
According to the German Machinery Equipment Manufacturing Association (VDMA) report in July this year, China's machinery and equipment exports amounted to 165 billion euros in 2020, with a global market share of about 15.8% and Germany's about 15.5%, which is the first time China has overtaken Germany in this field.
The German Federal Office for Foreign Trade and Investment even predicts that in 2021, China will increase its leading edge to more than 40 billion euros in machinery and equipment exports.
German magazine Der Spiegel quoted the agency ’ s research in August: “Chinese competitors are surpassing German exporters in more and more areas.
According to the German Institute for Economic Research (IW), the EU ’ s share of various industrial products imported from China rose from 50.7% in 2000 to 68.2% in 2019.
“In the field of machinery manufacturing, Germany may have lost its ability to compete with China, ” Der Spiegel said.
"Economist" analysis, a major advantage of Chinese manufacturing, is that the industrial sector is full of categories, products from the low end to the high-end.
In contrast, many German companies focus on niche markets, and the result of professional division of labor is the lack of a complete industrial chain that spans all fields like China.
The outbreak has led to a shortage of raw materials, which has had an impact on highly specialized German companies. Bloomberg News also pointed out that “once the supply chain that German companies normally rely on is cut off, it is difficult to find a replacement quickly. ”
Although Chinese manufacturers are catching up, Hermann Simon, the father of the invisible champion, said in an interview with Shang Zhou that the population of China is 17 times that of Germany, and 60% of the German invisible champion companies have set up factories in China. "It is inevitable that the absolute amount of money made in China will exceed that of Germany."
But Simon agrees that with the rise of China, German manufacturing still needs to be transformed, and that being “unique ” is the way to survive in the future.
“If Toyota didn ’ t sell cars today, the world wouldn ’ t be the same, ” Simon told Shang Zhou, adding that without Toyota, people would still have Nissan and Volkswagen cars to buy.
But if the German stealth champion ’ s laser machines go out of production — which are used in many factories around the world — “a large part of the world ’ s manufacturing industry will collapse. ”
Therefore, in order to maintain its superiority, German manufacturers must continue to maintain this irreplaceable.
In addition, another way out for German manufacturing is brand value.
In March, the Financial Times reported that Porsche CEO Oliver Blume said he would not consider building a factory in China, citing German manufacturing to maintain the premium capacity of the Porsche brand.
For the prestige of German manufacturing, even higher labor costs are required.
Looking at other industries, “unique ” and“ brand ” are the ways that pioneers face competition from China.
For example, the pioneers of smart phones are Apple, Samsung, in the face of the rise of China's affordable mobile phone millet, these pioneers also have to transform, either the main China can not replace, or emphasize brand value.
Made in Germany as well.
Exclusion weakens competitiveness
The Invisible Champion is down and digital is out of date.
Although Germany ’ s “invisible champions ” are irreplaceable, the reality is that their market value is not high: as the world ’ s fourth largest economy, there is no German company in the top 70 of the world ’ s top 100 companies by market capitalization.
Even unicorns — startups with a market valuation of more than $1 billion — in Europe, including Germany, are far below China and the United States.
Some analysts believe that this is the merit of the German craftsman spirit: focusing on technology and rejecting the money game of the stock market.
However, ignoring the results of market valuations will still affect the competitiveness of German companies in the long term.
Simon pointed out that one of the problems was the acquisition.
“From 2014 to 2020, China acquired 300 German companies, many of them stealth champions. ” These Chinese companies used the stock market to raise capital and then bought skilled German companies in silver bullion.
This is an adaptation of the 15th-century philosopher Nicolas Machiavel ’ s famous saying, “Technology does not bring gold, but gold always brings technology. ”
The second is research.
German companies do not attach importance to the stock market, meaning that they can only use their own money to invest in research and development, unlike those listed in China and the United States, which can use the money of investors. Bloomberg News quoted statistics: After adjusting for scale, the number of Chinese invisible champions in research and development is about three times that of their German counterparts.
“The German stealth champions must reflect on their rejection of the listing mentality.
Simon said during the weekly interview.
The deeper problem is that the German market is undervalued, reflecting that they have not kept up with the times.
In terms of cars, it is Germany's most important export, but the vast majority of these cars are built on internal combustion engines.
More and more countries are banning the sale of internal combustion engines in the future: Norway plans to phase it out by 2025, the UK by 2030, and the 27 EU member states by 2035.
In July, Wired UK described a car manufacturing hub like Germany as “probably the next Detroit. ”
In response to this trend, German Volkswagen has invested tens of billions of dollars in the transformation to electric vehicles.
But not every company has the same financial power as Volkswagen.
The backbone of Europe ’ s automotive industry consists of about 10,000 small and medium-sized parts suppliers – 1,200 of them in Germany alone.
In the electric car trend, these German products are feared to be outdated, even the invisible champion is no exception.
For example, Selzer, a family-owned business in the hills of western Germany, a 90-minute drive from Frankfurt, has been producing motor and transmission parts for the last 100 years.
The car market turned to electrification, which dealt a severe blow to its business.
Since 2018, more than half of Saize ’ s employees have been laid off; in 2020, all apprenticeships have been discontinued.
Sybille Brandenburger, an engineer who has worked at the company since she was 16 and has been there for 41 years, told Britain ’ s Wired, “We ’ re all afraid that one morning when we go to work, the door closes. ”
In addition, the wave of digitalization is sweeping the world, but Germany is the laggard.
In a recent EU report, Germany ranked 21st among the 27 EU member states and the United Kingdom for the extent to which online services are available to citizens.
“School computers are old, health authorities rely on fax machines, and town offices offer little or no online services – this is the reality in Germany in 2021, ” Deutsche Welle describes.
The Wall Street Journal quoted Hubert Barth, the former CEO of Ernst & Young Germany, as saying that some German blue-chip companies are “struggling ” in their transition to digital.
Some German companies are trying to catch up with digitalization. For example, sports brand leader Adidas has created smart manufacturing in Germany, which was once seen as a model for “Industry 4.0. ”
However, two smart factories (Speedfactories) that Adidas built in Germany and the United States in 2016 and 2017 respectively have been announced to close in 2019, moving their business to China and Vietnam, where labor costs are relatively low.
In economics, there is a so-called "path dependence" - the future generations continue to develop on the basis of the accumulation of previous generations, and relying on the completion of studies brings obstacles to innovation.
German stealth champions like Sezer are built on traditional manufacturing like internal combustion engines for everything from products and technology to employees.
However, when the internal combustion engine falls out of favor, these highly specialized enterprises are difficult to convert the runway and face the risk of being eliminated.
Renewable energy is shrinking.
Bureaucracy and populism block energy transition
Germany had hoped to completely phase out nuclear power by 2022 and coal plants by 2038.
However, according to the latest data from Germany ’ s Federal Statistical Office (Destatis), coal accounted for 27% of the country ’ s electricity generation in the first half of this year, making it the largest source of electricity generation.
The share of wind power, which was originally the largest source of electricity, fell sharply, hitting its lowest level since 2018.
The share of renewable energy in power generation has also shrunk from more than half to 44%.
“The latest data show the challenges facing Germany ’ s energy transition, ” Deutsche Welle said.
Germany "abandoned nuclear coal, to ensure regeneration" was originally for environmental protection, but the irony is that today's energy transition is blocked, but also because of environmental protection.
As Euronews reported in September, “Bureaucracy and angry locals are blocking the energy transition. ”
Bavaria, for example, introduced the 110-H rule that new wind turbines must be installed at least ten times the height of the nearest housing.
As a result, none of the wind power projects in the last two years have been licensed locally.
In Wargolshausen, Germany, a showdown lasted even 10 years.
Investors were forced to remove the new wind turbine base and replace it with the old one because of lawsuits filed by nearby farmers.
“We ’ ve wasted €6 million on this project.
It can ’ t go on like this, ” complained investor Jürgen Rüth.
At the same time, the energy transition also involves high electricity prices in Germany.
The average household in Germany pays the highest electricity price in the European Union, and the average household price per kilowatt (including tax) jumped to a record high of 0.3 euros in the second half of last year.
German household electricity bills have doubled since 2000: 20 years ago a three-person household paid an average of €41 a month for electricity, now it is €93.
Der Spiegel pointed to three reasons for the high price of electricity: First, power plants have to pay increasing costs for carbon dioxide emissions.
According to the latest EU regulation, the cost per tonne of CO2 emitted by energy producers is 54 euros.
Second, the performance of renewable energy is not as expected.
Low wind power and cloudy skies in Germany have produced only 87 terawatt-hours (TWh) of electricity from renewables this year, compared to 103 TWh in the same period last year.
Supply cannot keep up with demand, and electricity prices naturally rise.
Finally, the supply of natural gas in Europe has recently fallen to a record low, and the high price of natural gas has led to a huge increase in the cost of generating electricity.
Some have suggested that Gazprom, Russia ’ s state-owned gas company, is cutting gas supplies and pressuring Germany to complete the controversial Nord Stream 2 pipeline.
It also highlights the reality of Germany ’ s dependence on foreign energy.
In the long run, Germany ’ s electricity shortage is unlikely to disappear.
In March, Reuters quoted a report from the German Audit Office that said there could be a gap of 4.5 gigawatts (GW) in the German power grid between 2022 and 2025, equivalent to ten large coal plants.
The report said the German economy ministry ’ s push for an energy transition “is too optimistic, and its goals are to a certain extent incredible. ”
Nevertheless, not all German companies bear the consequences of high electricity prices.
The larger the electricity used by the enterprise, the lower the average electricity price.
Therefore, on the one hand, Germany's energy-intensive industries, which use large amounts of electricity, enjoy low electricity prices, which are accused by European neighbors of unfair electricity price subsidies.
On the other hand, German SMEs pay high electricity prices due to low electricity consumption.
Ingeborg Neumann, a spokesman for Fair Energy Transition, a group of 10,000 German small and medium-sized businesses, told the German newspaper Merchants that high electricity prices are “the killer of our competitiveness. ”
20 years of energy transformation, Germany is facing the problem of power supply shortage, power price system and energy conservation contradiction.
At present, the main political parties in Germany support the energy transition, but as EuroNews said, “Germany urgently needs a new and reasonable legal framework to make the energy transition work. ” It seems that the energy transition and the industrial transformation it entails are probably the biggest challenges for the next German Chancellor.
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Electricity prices rose markedly, with German household power prices about 80% higher than in France, and industry has reported competitiveness pressures.

Title:

Content: ● Talk from the beginning
In October 1973, the Organization of Petroleum Exporting Countries, led by Saudi Arabia, imposed a embargo on countries supporting Israel with oil as a weapon. The embargo lasted until March 1974, when the global price of oil rose by nearly 300%, from $3 per barrel to nearly $12.
Recognizing the importance of stable energy supply and price, many countries have begun to develop nuclear power.
In that era, the development of nuclear energy in Germany and France went hand in hand. Both countries imported nuclear power technology from the United States, and both established independent nuclear power industries.
In 1979, the Three Mile Island accident in the United States did not change the Social Democratic Party's support for nuclear energy in Germany at the time, and then the 1986 Chernobyl disaster in Russia caused a major impact on Germany's nuclear energy policy. In August 1986, the Social Democratic Party passed a bill to abandon nuclear power within 10 years, Germany terminated the development plan for new reactors, and power companies dared not plan to build a nuclear power plant. Merchants.
Overall, the passage of the Act did not affect the operation of the nuclear power plants in transit in Germany, with a capacity of 20,339 and 20,583,000 megawatts in 23 years from 1986 to 2009, and a further 22.9 million megawatts in 1989.
In other words, the ruling party in Germany recognized the importance of nuclear power to the country ’ s economic development and did not implement the nuclear abolition bill hastily passed in August 1986 under the anti-nuclear passion of the Chernobyl nuclear power plant disaster in Russia.
Obviously, the non-nuclear file, can only say, can not be done.
Non-nuclear weapons are a bargaining chip for political power
In October 1998, the Social Democratic Party and the Green Party organized a joint government and began to discuss a non-nuclear timetable with power companies. The Green Party, a small party with ideological leadership and national recognition of only 6.7%, changed the national energy policy through the power to gain the leadership of energy policies that are closely related to national security.
The assumption of power by political parties recognized by more people is the basic tenet of the operation of democratic politics.
When, in order to gain political power, different political parties used coalitions to lead to the opinions of the minority and hostage the understanding of the majority, is this the normal state of democratic politics?
Ridiculous, even more pathetic!
After numerous and varied threats, the coalition government and the power companies reached an agreement in late 2000.
The key point of the agreement is that the government will allow the units in operation at the time to continue operating until the cumulative generation of 2,623 billion kWh, equivalent to an average useful life of the units of 32 years (the power company originally expected 36 years), and that Germany will be non-nuclear by 2022.
The government is committed to ensuring the smooth operation of the nuclear power plant and the disposal of nuclear waste without political interference. In June 2001, the “Red Green ” coalition government signed an agreement with four power companies.
The agreement clearly stipulates that Germany will no longer build nuclear power plants and allow the temporary storage of used nuclear fuel at the site.
Based on the cap on nuclear power generation, a less cost-effective unit was stopped in 2003 and 2005, with a installed capacity of 640,000 MW and 340,000 MW, respectively, and it operated for 31 and 36 years.
In addition, a unit with a capacity of 1.22 million megawatts was built in 1986 on the banks of the Rhine. The unit was discontinued in 1988 due to anti-nuclear protests, and its power company abandoned the unit in 2003 to begin decommissioning work. Two units with a capacity of 771,000 megawatts and 1.26 million megawatts were suspended in 2007 and 2009, respectively, for 30 years and 25 years.
These two units are boiling water reactors, which are different from the mainstream pressurized water reactors in Germany.
Germany ’ s non-nuclear decision in 2000 was a pragmatic compromise that quelled the protests of anti-nuclear groups, kept the plant running smoothly, and provided the government with enough time to think about national energy policy.
An industrial leader reminded the government that reliable and affordable energy is an important part of Germany ’ s economic policy.
Opposition leaders in Congress said there was a chance they would change the decision.
The expectation of power companies is to increase the average operating year of all nuclear power units from 32 to 40 years, and then to 60 years depending on the situation of individual units.
● New opportunities brought about by the change
In September 2009, the new coalition government of the Christian Democrats and the Liberal Party announced plans to withdraw the "non-nuclear policy".
At this time, Germany still has 17 operational nuclear power units, but one is in a long-term state of decommissioning.
If all the units can be extended from the original agreed 32 years of operation to 60 years, it is estimated that the additional profit of the power company will be 100 billion euros, and the government must take a share, let alone 50 billion euros.
Financial negotiations took a year to complete.
The new nuclear policy allows for 40 years of operation (an additional 8 years) for units that were negotiated before 1980, and 14 years for units that were negotiated after 1980.
The government pays dividends on the extension of nuclear power plants to the national treasury under various taxes, donations and surcharges.
For example, the tax on nuclear fuel based on the weight of nuclear fuel used is increased to 2.3 billion euros per year, equivalent to 0.016 euros per kilowatt-hour.
In order to supplement the development of renewable energy, we will provide 300 million euros each in 2011 and 2012, 200 million euros each from 2013 to 2016, and 0.009 euros per nuclear power generation after 2016. The funds will also fund a recovery plan for a waste salt mine that is disposed of from nuclear waste.
Germany ’ s policy of abandoning nuclear energy has officially turned a corner.
• Planning does not change
On March 15, 2011, German Chancellor Angela Merkel announced that the new nuclear energy policy adopted only four months ago was suspended for three months. At the same time, seven units that had been negotiated before 1980 were immediately shut down. This represents a decrease of 8,336 MW, or 6.4% of the total installed capacity.
In May 2011, the German regulatory authority issued a statement saying that after various assessments, all German nuclear power units are in good condition and there are no concerns about their safety.
Despite this, the German government announced on May 30 that under pressure from anti-nuclear local governments, it will return to its original non-nuclear policy and close all nuclear power plants by 2022. At the end of June and July 8, the German House of Representatives and the Senate respectively passed decrees to expand wind power generation in response to the shutdown of nuclear power plants, while agreeing to build coal-fired power plants and gas plants without changing carbon reduction targets.
In order to solve the problem of insufficient baseload power after the nuclear power plant is stopped, electricity will be imported from France, Russia and Poland.
It ’ s all about non-nuclear policy.
Some nuclear power plants have been forced to shut down, but the nuclear power plants that continue to operate still have to pay various heavy taxes according to the 2011 revision of the Atomic Energy Law. Tax rebates of €6.3 billion between 2011 and 2016 and the suspension of tax on nuclear fuel.
The nuclear fuel tax was abolished at the end of 2016. In order to avoid the nuclear fuel tax, the fuel exchange time of five German units was postponed to January 2017, and a total of 8 billion kWh of power generation was lost from mid-December to the end of February 2016.
After 10 years of litigation, the government reached a settlement with four power companies for a total amount of 4.8 billion euros.
This amount of money is the most direct price of policy repetition.
In response to nuclear waste, in order to maintain a stable power supply, the huge investment in power generation and transmission systems is a heavier burden on society.
In May 2011, the German power grid department warned that the closure of nuclear power plants will lead to insufficient baseload power generation capacity, and renewable energy generation facilities are scattered, and renewable energy rich areas and power consumption areas are at a distance, requiring transmission networks.
The lack of power transmission capacity will make the grid fragile and unreliable, and the stability of the grid is facing great challenges. In May 2012, Germany announced a 10-year plan to expand and strengthen the grid, with a total of 26 transmission projects, with a total investment of 10 billion euros.
Germany calls the policy of increasing the proportion of renewable energy generation and phasing out nuclear energy as Energiewende (energytransition), an appropriate translation is also our slogan, "energy transition"!
For the public, the direct cost of the energy transition is that household electricity prices are the second highest in Europe and the highest in Denmark.
According to statistics, in December 2021, the price of domestic electricity in Germany was 80% higher than that of France.
Electricity prices in Germany
The electricity market in Germany is completely liberalized, and power companies sell electricity generated by various forms of electricity generation in the wholesale market. The price of electricity in the wholesale market is open information, which allows power companies to obtain electricity from the wholesale market and transmit it to consumers through the electricity network.
Taxes paid by different types of consumers are also different.
Due to various measures to reward renewable energy, distorting the market mechanism, the German wholesale electricity price is lower than other countries, and sometimes even negative, 298 hours of wholesale electricity price is negative in 2019 and 139 hours in 2021.
The average wholesale price of electricity in the German electricity market is 0.03767 euros / kWh in 2019, 0.03047 euros / kWh in 2020, and 0.09685 euros / kWh in 2021. The average price in the first half of the year is 0.054 euros / kWh, rising to 0.1380 euros / kWh in the second half of the year.
As shown in the attached figure, the Russian-Ukrainian war caused a surge in gas prices, which had a huge impact on electricity prices in Germany; in July 2022, the high price of 0.3153 euros per degree was 6.4 times that of January 2019!
The price of electricity for domestic or small commercial use in Germany is very high.
Look at the price structure of electricity for German households.
Germany ’ s household electricity price in 2006 was 0.1946 euros per kWh. It rose to 0.3216 euros per kWh in 2021, and has reached 0.3714 euros in 2022. In 2021, more than half of Germany ’ s household and small business electricity price burden came from additional taxes or fees due to energy policies. 16% is a sales tax, 20% of the renewable energy surcharge is paid to the renewable energy industry, 6% of the electricity tax (also known as the ecological tax), and there are three smaller surcharges.
If so, why not in the first place?
In 2010, Germany had 17 nuclear power units with a total installed capacity of more than 20 million megawatts, accounting for about 15% of the total installed capacity. In 2010, the total generation capacity was 133 billion kWh, accounting for about 25% of the total generation capacity. At the end of 2011, there were 9 nuclear power units with a total installed capacity of 12 million megawatts.
Compared to 1990, the total installed capacity was 1.3 times, but the power generation increased by only 11%.
Wind and photovoltaics account for nearly half of the installed capacity, but only 28% of the generation.
Nuclear power plant capacity accounted for only 4.1%, but power generation accounted for 12.4%. In 2021, three nuclear power units were shut down, and there are only three units in operation, with a total installed capacity of 4.055 million megawatts, accounting for less than 2%, and the total power generation may be about 6%. Can the economy afford to shut down the remaining three nuclear plants in 2022?
According to a news report on August 18, "Germany is facing an energy shortage crisis this winter and has planned to delay the closure of the country's last three nuclear power plants."
The decision has not yet been formally adopted by Prime Minister Bernard Shaw and may need to be passed by parliament. Details are still being discussed and a cabinet resolution will have to wait weeks for an energy demand assessment to come out, but officials believe the results are already known, according to three officials.
According to online data, Germany has eight decommissioned units that have not been in service for 40 years, and if the international consensus is that nuclear power units can be used for at least 60 years, the extension of these units can significantly reduce the dependence on imported natural gas.
It remains to be seen whether the shift in German nuclear policy will extend to these eight units.
● Other Mountain Stone
Looking at Taiwan ’ s electricity situation, the schedule summarizes Taiwan ’ s electricity data for 2019 and 2021, which can be compared with Germany ’ s data for 2019. Germany ’ s total installed capacity and total power generation in 2019 are 4.1 times and 2.2 times that of Taiwan, respectively.
The average capacity factor for electrical equipment in Germany is 30% and in Taiwan it is 56%.
Renewable energy cannot generate electricity all the time, and when the installed capacity is large, the average capacity factor will be low.
But there are other factors, in 2019, Germany ’ s natural gas installation capacity of 46 million megawatts, generating 90.8 billion kWh; Taiwan is 17.57 million megawatts and 91.2 billion kWh; the installed capacity is only 38% of Germany ’ s, but the power generation is equivalent.
Germany ’ s electricity grid is part of the European continent ’ s electricity grid, and data can be found on the network. In 2020, Germany exported 66.39 billion kWh of electricity and imported 48.05 billion kWh. About 20% of Germany ’ s domestic electricity production is exchanged with other countries.
If the exchange is not possible, it is necessary to abandon electricity when the amount of renewable energy generation exceeds the amount of electricity used or the capacity of the grid; when the renewable energy generation is insufficient, more dispatchable units are needed.
Renewable energy generation must be coupled with a power generation facility that can be scheduled, so that the power grid can be stable.
When the capacity of renewable energy installations is large, the capacity of the installations with the power generation facilities that can be adjusted will also increase.
The average capacity factor of German natural gas units is only 15%.
In other words, Germany ’ s natural gas unit is idle 85% of the time, isn ’ t that the cost of renewable energy?
When renewable energy must have a total installed capacity of 12.7 million megawatts (54.8%) of renewable energy (wind, light, water, and waste) with a capacity of 255.1 billion kWh (41.9%); the installed capacity is 16.3 times that of Taiwan ’ s 7.8 million megawatts in 2019, and the power generation capacity is 16.8 times that of Taiwan ’ s share is only 5.6%. Degrees.
From the number of renewable energy generation, Taiwan really can not be compared with Germany, but can we really develop to the realm of Germany?
Germany ’ s territory covers an area of 357,622 square kilometers, 9.9 times Taiwan ’ s 35,980 square kilometers.
Simply estimate the amount of renewable energy generated per square kilometer of land in Germany is only 1.7 times that of Taiwan.
In other words, if Taiwan ’ s renewable energy development can be as good as Germany ’ s, our renewable energy generation capacity can be doubled again! Is that enough? What does the rest rely on? Petrified fuels? Taiwan ’ s use of fossil fuels for power generation is 82.0% in 2019 and 83.3% in 2021. What should we do about the reduction of greenhouse gases? Energy can be developed, hydrogen is an energy carrier, not energy, that is, hydrogen production still depends on other sources of energy.
The Germans can ’ t take the risk, we don ’ t see it.
Germany's nuclear energy policy is all caused by natural gas, on the one hand, the source is cut off, on the other hand, the natural gas shortage caused by the soaring price of fossil fuels.
Fossil fuels account for 46.3% of Germany ’ s electricity generation, and the rise in wholesale electricity prices has been alarming. The German government has revised its nuclear energy policy once again in order to spread the risk of excessive reliance on natural gas.
In Taiwan, fossil fuel power generation accounted for 83.3% in 2021, can the impact on electricity prices be lighter than in Germany?
You can't see that Taiwan Power Company is expected to have a loss of 200 billion yuan this year, and CNOOC is also in the tens of billions!
The government is afraid to adjust the price of electricity and natural gas for fear of affecting the election.
A few days ago, the media reported that the government has compiled a budget to directly eliminate the deficit.
Do they still have the law in their eyes?
If the government respects the results of the 2018 referendum on nuclear and green energy, and four years ago it began to promote the renewal of the licenses of the four nuclear companies to transfer and operate China's power plants, Taiwan will pay a lot less in this wave of soaring fossil fuel prices.
A while ago, the military exercise across the strait, it can be seen that it is rehearsing to block Taiwan, if it is really blocked in the future, our natural gas stocks can stand for a few days! Our government seems to be old in the ground is not proper, still clinging to the god of the non-nuclear homeland, refusing to open their eyes to see the latest international energy trends.
After Germany abandoned its non-nuclear policy, the only countries in the world that have used nuclear energy, only Taiwan has a non-nuclear timetable, China, the United States, France, Japan, South Korea and India, etc., are building or planning new nuclear power plants.
The Taiwanese government should wake up.
Those who pretend to sleep cannot wake up, so let us spit on those who stand in line with those who pretend to sleep!
With the election looming, let ’ s ask the candidates whether they support nuclear power?
If not, ask him to tell you where Taiwan's energy policy should go, how Taiwan meets the requirements of international carbon reduction, what to do when Taiwan is short of power, and who pays when electricity prices surge? (The author is a Distinguished Professor of Engineering and Systems Science, National Tsing Hua University)
※ The above statements do not represent the position of Wangzhong Media Group ※
# Germany # Unit # Electricity # Euro # Nuclear

High energy costs have hit households and industry, with some manufacturers considering moving production abroad due to economic troubles.

Title:

Content: 11 Feb, 2024 13:59

German industry ‘moving abroad’ – Bild

A growing number of manufacturers are relocating operations outside the country, an industry lobby warns

One in three German manufacturers is considering moving production to other countries amid economic troubles, double the number recorded in 2022, Bild news outlet reported on Saturday, citing Siegfried Russwurm, the head of the Federation of German Industries (BDI).

According to the report, among the latest firms planning to relocate is household appliance manufacturer Miele, which plans to cut 2,000 jobs in Germany and move 700 positions to its site in Poland. Heating manufacturer Viessmann had already moved 3,000 jobs to Poland.

Volkswagen said last year that it would build a new battery factory in the US, and BASF announced plans to invest €10 billion in a petrochemicals plant in China amid job cuts at its headquarters in Germany. French steel pipe manufacturer Vallourec shut down production in Germany in September last year, while tiremaker Michelin and its US rival Goodyear said they would also close their German plants by the end of 2025.

Russwurm says that a growing number of companies have reported that their “patience with Germany is at an end.” According to him, the slowdown in economic growth and high rates of inflation, especially with regard to energy, have resulted in less investment, and Berlin lacks a strategy to turn the situation around. This in turn leads to a gradual decline in manufacturing, he said, and while existing production lines may continue to operate for a while, “new ones are no longer being built in Germany.”

Many companies point to the high energy prices, which soared after Germany lost access to Russian natural gas in 2022, as one of the major causes of their problems. This was exacerbated by Berlin’s decision to phase out nuclear energy and coal and switch to renewables, which, according to Russwurm, put manufacturers working in Germany at a significant disadvantage compared to other industrialized nations.

“Nobody can say with any certainty today what our energy supply will look like in seven years’ time, and that’s why no one can say how high energy prices will be in Germany then. For companies that have to make investment decisions, that is absolutely toxic,” he said in an interview with the Financial Times earlier this week, adding that the government is making mistakes regarding its energy policy with its ambitious climate agenda, which aims to achieve carbon neutrality by 2045 and switch 80% of power output to wind and solar energy by 2030.

“Companies are saying they are finding it increasingly difficult to do any long-term planning. They have great doubts about continuing to invest in Germany under these conditions. The conditions are better elsewhere. And they’re going abroad,” Russwurm said.

For more stories on economy & finance visit RT's business section

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Industrial electricity demand fell in 2023 and German power prices were about 160% higher than in 2019, underscoring the strain on the market.

Even so, solar and wind additions helped fill roughly the 8.1‑GW generation gap left by the shuttered reactors.

By 2023, renewables generated 53.4% of Germany’s electricity, with wind alone providing 28.6% of total generation.

Title:

Content: People 's Network > > International
Germany's onshore fan capacity in the first nine months of this year has exceeded last year's
October 15, 2023, 10: 01 | Source: Xinhua Network
Small number
BERLIN, Oct. 14 (Xinhua) -- The latest statistics released by the German Onshore Wind Energy Agency show that as of the end of September, the installed capacity of onshore wind energy newly put into operation in Germany has exceeded the full year of 2022, and Germany is accelerating the expansion of onshore wind power.
According to statistics released by the agency on the 12th, Germany added 2,436 megawatts of onshore fan capacity in the first nine months of this year, surpassing the 2,405 megawatts in the whole of last year.
More than a third of the new fan capacity this year was built in the northern German state of Shihe, and relatively few new fans were built in the southern region, accounting for only 7% of the total capacity.
With the rapid growth of new fan capacity, the approval of wind energy projects is also accelerating.
As of the end of September, Germany has approved 5.2 GW of new wind projects, which is also more than the same period in any previous year.
North Wales and Ishikawa each approved more than 1.1 GW of wind energy projects.
According to statistics released by the German Federal Statistical Office in September, more than half of Germany ’ s electricity generation in the first half of 2023 came from renewable sources, accounting for 53.4%.
Wind energy overtook coal as the most important source of electricity, accounting for 28.6% of total electricity generation.
Germany aims to achieve at least 80% of the electricity supply from renewable sources by 2030 and become one of the first industrial countries in the world to achieve a climate neutral transition by 2045.
Germany plans to increase its onshore wind capacity by 10 gigawatts per year.
Despite rapid expansion, Germany still faces challenges in meeting its wind energy development goals.
According to the German Wind Energy Association, Germany needs to take a series of measures to reduce bureaucracy and speed up the relevant procedures.
German Chancellor Gerhard Schorz said at the Hannover Messe in April that if Germany is to meet its climate targets, it "will need to build an average of four to five wind turbines a day and install solar systems with an area equivalent to more than 40 football fields".
(Edited by: Su Yushang, Cui Yue)
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Russia’s invasion of Ukraine upended Germany’s energy security, with Russia cutting gas supplies and Berlin rapidly reducing dependence on Russian fuels.

Title:

Content: Russia, Ukraine under international sanctions to reduce dependence on Moscow for natural gas supply
BERLIN (AFP) – Moscow ’ s invasion of Ukraine highlights Germany ’ s dependence on Russian gas, forcing Europe ’ s largest economy to urgently adjust its domestic energy mix.
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"We have to change course to overcome our dependence on imports," German Chancellor Olaf Scholz told a special session of the Bundestag on the Ukraine crisis.
With Russia increasingly isolated from the rest of the world as a result of sanctions imposed on the Ukrainian economy, Berlin can no longer rely on Moscow to supply more than 50% of Germany ’ s natural gas.
German Finance Minister Christian Lindner said on Monday that energy supplies were still mostly exempt from Western sanctions, but that policymakers still had to respond to Russia ’ s decision to stop gas supplies.
A coalition of the Social Democrats (SPD), the Greens and the Liberal Democrats (FDP) came to power in December last year, with the new government pledging to withdraw coal-fired power by 2030, but upholding former Prime Minister Angela Merkel ’ s decision to let nuclear power out of service by the end of 2022.
But in Germany ’ s green energy transition plan, natural gas plays a critical and excessive role, providing existing energy supplies before wind and solar power are in place.
Robert Habeck, Germany ’ s economy and climate minister, recently said, “In the short term, we may have to leave coal-fired power in reserve. ”
Green ministers also did not rule out delaying the decommissioning of Germany ’ s last three nuclear power plants.
However, the German government faces significant challenges in pursuing the nuclear option.
“You can ’ t delay the decommissioning of a nuclear power plant after you decide to shut it down, ” says Karen Pittel, an energy expert at the think tank IFO.
Power company RWE told the German daily Handelsblatt that maintaining nuclear power plants in operation would face “extremely high barriers ”“ on a technical and administrative level. ”
(Translator: Liu Shuqin / Review: Chen Chengyi)

Between early 2022 and later that year, Germany cut its dependence on Russian oil from 35% to 12%, gas from 55% to 35%, and coal from 50% to 8%.

Title:

Content: Pelosi in Kiev.
Turkey is called the “Istanbul Trail ”.
Is Germany Drifting to ‘ Burn Bridges ’ with Russia?
T + T - normal size
The course of the war in Ukraine is deepening, and talk about the possibility of making progress or holding hopes on the diplomatic track and a negotiated solution, to the extent that Turkey returned yesterday to remind the world of something called the “Istanbul track ” in the negotiations, and that the longer the war, the more complicated the circumstances. Others.
This American support increases pressure on less impulsive and more war-affected allies, such as Germany, where Chancellor Olaf Scholz has been busy responding to critics who accuse him of being too slow to support Ukraine, but the continuation of the war is gradually eroding middle or less impulsive positions.
On Sunday, Schulz appealed to Russian President Vladimir Putin to stop the war, telling him: “Silence the weapons and withdraw your troops. ”
The German chancellor defended his policy in dealing with the Ukrainian crisis, amid accusations that he was acting with hesitation and fear in the face of Russia.
The leader of the opposition Christian Democratic Party, Friedrich Merz, recently accused the German chancellor of being too timid given German arms supplies to Kiev.
Ukraine ’ s ambassador to Germany, Andrei Melnik, described Schulz ’ s policy as slow, telling German newspaper Bild am Sonntag: “Olav Schulz takes almost the same approach as Angela Merkel: first he waits, watches, then makes a decision later at some point, or doesn ’ t take either, what he lacks is imagination and courage. ”
On Tuesday, the German government approved the supply of German-made Gibbard anti-aircraft tanks to Ukraine.
These are the first heavy weapons to be supplied directly from Germany to Ukraine.
During a visit to Japan on Thursday, the German chancellor declined to respond to a question about whether the federal government would authorize further deliveries of weapons requested by Ukraine, such as Leopard tanks and Marder armored personnel carriers.
Energy Dependency
The pressure of allies and adversaries on Germany seems to be bearing fruit, and its ability to take a stand distinct from those of Washington and London is limited in light of the major media campaign within the weapons of war.
In this context, the German government announced that it had made progress in reducing its energy dependence on Russia since the beginning of the war in Ukraine.
According to a report by the German Ministry of Economy and Climate Protection, “there have been advances in oil and coal in particular in recent weeks. ”
“Germany is in the process of reducing its energy dependence on Russia very quickly and is in the process of establishing a wider energy supply base. ”
According to the report, the dependence on Russian oil fell from 35% last year to 12% now, and the dependence on Russian gas fell from 55% last year to about 35% now, and the dependence on Russia in coal fell from 50% at the beginning of this year to about 8% now.
German Economy Minister Robert Habeck said: “All these steps we are taking require a huge joint effort from all actors, and they mean costs that will be felt by the economic community, as well as consumers, but they are necessary if we are not to be blackmailed by Russia later. ”
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To safeguard supply, Germany reduced gas use in power generation, considered keeping coal plants online longer, and warned of tight winter supplies while activating a national gas emergency plan.

Title:

Content: BERLIN (Reuters) - Germany is considering keeping coal-fired power plants open longer to ensure energy security, the government said Thursday, as Russia ’ s invasion of Ukraine raises concerns about electricity supplies.
Berlin said it would reduce the use of gas for electricity generation by "potentially keeping coal-fired power plants as a security precaution for a longer period".
The decommissioning of power plants "could be suspended until further notice," she said, adding that she and "in principle" could commit to the goal of gradually reducing coal use by 2030.
Climate neutrality
The coalition, which includes the Social Democrats, the Greens and the Liberal Free Democratic Party, has sought to end coal use in the coming years in order to reach climate neutrality by 2045.
The energy transition was predicated on temporarily increasing gas imports while boosting renewable energy infrastructure.
But the war in Ukraine changed Germany ’ s best plans.
Fifty-five percent of Germany ’ s gas imports come from Russia, exposing its dependence on Russian energy resources as Western allies push for sanctions against President Vladimir Putin ’ s administration for invading Ukraine.
Germany's Greens economy minister has been forced to search around the world to buy coal to boost energy reserves.
Pressure has been mounting amid growing calls by Western countries for a total ban on Russian energy imports, but Germany has so far refrained, citing possible repercussions for Europe's largest economy.
Putin ratcheted up the tone on Wednesday by demanding payments for gas purchases in rubles, which Germany said was a breach of contracts.
US President Joe Biden will attend Thursday ’ s summit in Brussels, which is expected to focus on energy security.

Berlin moved to diversify through LNG and wider imports, including building LNG terminals and pursuing new supplies from partners such as the United States and Qatar.

Title:

Content: Geopolitics / Ukraine
The Ukraine War Affects Germany ’ s Energy Strategy
Russia ’ s war on Ukraine forced Germany to overhaul its energy strategy.
Berlin has urgently started the construction of two previously abandoned LNG terminals.
This is the subject of a field interview published by our RFI correspondent in the French "Chronique Reportage International" column on Thursday, March 3rd.
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In an interview published on Thursday, March 03, 2022 in Chronique Reportage International, correspondent Julien Méchaussie reported from Berlin that Germany, which imports more than 50% of its natural gas and relies on Russian supplies, is now forced to review its energy strategy from the bottom up.
In the face of the inevitable price increase, the people are very worried.
The original title of this RFI column in French was: [Guerre en Ukraine: les conséquences sur l'appropriationnement en gaz russe pour l'Allemagne].
The war in Ukraine: consequences of Russian gas supplies for Germany.
Below is a brief summary for information.
The German people are upset -
In a live interview from Berlin published Thursday in Chronique Reportage International, RFI ’ s French-language network, a passer-by said in German on his way to work that the outbreak of the war in Ukraine had caused a decades-old energy policy to collapse in a matter of days.
Rising energy prices are not good for anyone.
This is not good for the job market, which automatically leads to price increases for all products.
People will be afraid of huge inflation, and the impact on the economy is tragic.
Here, the RFI French correspondent pointed out that the fear of the passer-by interviewed represents many German people.
In Germany, which has a long history of importing Russian gas, Prime Minister Olaf Scholz announced the suspension of the Nord Stream 2 gas pipeline project.
The pipeline linking northern Germany to Russia via the Baltic Sea was completed in September 2021.
The project has now come to a halt. Nord Stream 2 declared bankruptcy this week and more than 100 of its collaborators lost their jobs.
There were signs before the war -
A well-known professor of environmental and resource economics called Germany naive.
He said that at the beginning of this winter, the wind has turned around.
Before the war, Russian gas exports to Germany had dropped to their lowest level in months.
Despite the record price, it is now good to see that this is clearly part of the overall strategy of the Russian side.
German Deputy Prime Minister and Federal Minister for Economy and Climate Robert Habeck plans to increase coal imports.
The German Federation of Small and Medium Enterprises has called for an extension of the deadline for coal abandonment, which was decided at the end of last year.
Germany, now seeking to diversify its energy supply, will turn to countries like the United States and Qatar.
But the problem is that these countries are now exporting liquefied natural gas, and Germany has no corresponding terminal to be docked.
Experts interviewed pointed out that Germany is in urgent need of new liquefied natural gas terminals.
However, it takes three to four years to build a terminal.
Of course people can do it as quickly as possible, but this new strategy is not a very short-term solution.
We need to rely on existing infrastructure.
Once the new terminal is put into use, the sky should clear up.
Germany launches old project -
Abandoned two years ago due to a lack of political support, two projects to build LNG terminals in the North Sea have now been urgently launched at a cost of around €1 billion.
... and...
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Germany also signed a 15‑year gas deal with Qatar and launched an energy partnership with the United Arab Emirates to further diversify supply.

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Content: Arabic & International
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Denis Comitat to Al-Nahar: The presence of a German spokesperson in the Middle East is proof of our interest in spreading in the Arab world
Dr. Denis Komett, spokesman for the German Foreign Ministry in the Middle East and North Africa region and director of the German Media Center, told Al-Nahar that Russia ’ s war of aggression against Ukraine is a war against international law and must end it immediately, noting that this terrible war affects different regions and has caused explosion in food prices and food insecurity.
He stressed that Germany will not suffer from a shortage of gas supplies, noting that German gas storage facilities are currently more than 95% full.
He stressed the German government ’ s support for people facing financial challenges due to high energy bills, noting that a memorandum of understanding has been signed with Qatar that will allow gas supplies to Germany for 15 years.
as well as an energy partnership with the United Arab Emirates.
He also stressed that Germany is committed to its international obligations in the field of reception of refugees and that those allowed to stay have good opportunities to integrate into Germany.
To the text of the dialogue:
♪
How the Federal Government of Germany monitors the Russo-Ukrainian War
Its current and future causes and consequences?
What is Germany doing to end this war?
♪
We have said from the beginning that this war of Russian aggression against Ukraine is a war against international law, and Russia must end it immediately.
This terrible war affects very different regions: first of all, of course, it affects the people of Ukraine, destroying their livelihoods, and the infrastructure of their country.
But of course it also affects Europe, because of the influx of many people seeking protection, and we have already taken them in.
At the political level, through Russia ’ s brutal violation of the most basic norms of international law.
Globally, the impact of war has been demonstrated by exploding food prices and food insecurity.
As you can see, there are many effects, all of which are bad.
Germany wants the war to end immediately.
All the Russian president has to do is give the order to withdraw.
Alternative Energy
♪
How Germany will cope with what can be described as a severe winter crisis without Russian gas
Is Gulf gas among Germany ’ s alternative energy sources?
♪
I have to correct the idea that Germany will suffer a severe energy crisis next winter.
The war quickly turned our backs on Russian gas imports, leading to higher energy prices — a price we are politically willing to pay.
Therefore, the German government also supports people who face financial challenges due to high energy bills.
But we are also well prepared for the winter: German gas storage facilities are currently over 95% full.
In addition, we signed a memorandum of understanding with Qatar just last week, which would allow gas supplies to Germany for 15 years.
There is also an energy partnership with the United Arab Emirates.
Other important gas suppliers to Germany also come from Europe, for example from Norway.
At the same time, we are expanding our capabilities in the field of renewable energies.
Each installed solar panel makes us less dependent on Russian gas, and improves the results of our climate action.
A source of strength.
♪
The Russian-Ukrainian war and earlier conflicts in the Middle East (Libya, Iraq-Yemen, Tunisia, Syria) have caused a steady increase in the number of migrants to Europe in general and Germany in particular.
How to deal with the issue of migrants and refugees in Germany
To what extent are they a burden on infrastructure in Germany?
♪
The reasons for people moving to Europe have always been diverse: some are under severe political persecution, others are looking for a better economic life.
Germany is committed to its international obligations in the reception of refugees.
We want people who are allowed to stay here to have good opportunities to integrate into Germany.
Just last week, German Chancellor Olaf Scholz took part in an event on “Germany as an immigration state. ”
The modern immigration state views diversity as a source of strength.
The modern immigration state recognizes individual life paths and promotes participation and inclusion from the outset.
It is important for us to create the framework conditions for how this can best work.
Furthermore, we support legal migration routes to Germany, as well as a large number of projects in so-called refugee-receiving countries (such as Jordan, Lebanon, Turkey as well as North Africa) in order to give refugees and migrants in these countries better prospects for the future.
Responsibilities of Germany
♪
Climate policy requires the whole world to join hands and industrially developed countries have a greater role to play. What assistance will Germany provide to the Middle East countries to overcome the consequences of this crisis?
♪
It is right that we must work together to contain the tragic effects of the climate crisis, which we are beginning to feel clearly today.
All countries must do more, and reduce carbon dioxide emissions, so that we can achieve the Paris climate goals.
As a large industrialized country, Germany has a special responsibility here.
This is why we support many climate protection projects across the region.
Significant progress was also made at the COP27 Conference of the Parties, held in Sharm el-Sheikh.
There will be a fund that will support the countries most particularly affected in the event of climate damage.
Many countries have fought for it for decades, and Germany and the European Union have actively campaigned for it before and during the COP.
♪
Germany has set itself the goal of being climate-neutral by 2045.
Tell us about the package of actions associated with achieving this goal!
♪
In Germany this year, we released the most ambitious legislative package in decades to expand renewable energies.
By 2030, 80 percent of our electricity must come from renewable sources.
We have also created targets for different sectors, such as transportation, consumption, electricity, house construction or renovation and many other areas, which we will then implement one by one to achieve the big picture.
We are firmly focused on the goal of climate neutrality by 2045, as the German chancellor reiterated during his speech at COP27.
Spreading
♪
I mentioned before that the presence of a German speaker in the Middle East is a sign of the rapprochement between Germany and the Arab world.
Can we talk about the points of contact and rapprochement from the point of view of Germany?
And what are the political issues that clearly show this convergence?
♪
Germany and the Arab world are getting closer and closer together, and interest in Germany in the Arab world is very high, so many people have a lot of questions about Germany, its society and its politics.
The task of the regional speaker is to shed light on these specific issues, to show what Germany stands for politically and economically, to point out the particular priorities of our policies – examples this year are above all our support for Ukraine, Germany ’ s climate-related foreign policy, and feminist foreign policy – and also to explain a little about our society.
Of course, this works best in this region in Arabic, because we can reach many people by choosing the language, which is very important to me.
This way I connect with many different people from all over the region, which I consider very special.
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The energy shock drove price surges and recession risks, with the OECD forecasting a 0.7% contraction and the government deploying a large price‑cap package to cushion consumers.

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German Finance Minister Christian Linder warned on Thursday that Berlin was in an “energy war ” with Russia, while his government announced funds to cap energy prices.
“We find ourselves in an energy war linked to prosperity and freedom, ” Linder told reporters, noting that the new €200 billion fund to counter rising energy prices was“ a very clear response to Putin. ”
We are economically strong. ”
Germany plans to spend up to 200 billion euros ($195 billion) to help people and businesses keep up with rising energy prices.
Chancellor Olav Schulz said on Thursday that the government would reactivate the Economic Stability Fund (ESF), which was previously used during the global financial crisis and the coronavirus pandemic.
“Russia ’ s decision to cut off natural gas to Europe and the recent leaks from Nord Stream 1 and 2 have shown that realistically no more energy supplies should be expected from Russia in the near future, ” he said.
Anticipate Depression
Germany ’ s leading economic institutes predicted on Thursday that Europe ’ s largest economy would enter recession next year due to persistently high energy prices.
Ifo, RWI, EWH and EFW report: “Germany ’ s economy will not be able to avoid recession next year. ”
A report by the Organisation for Economic Co-operation and Development (OECD) predicts that Germany will enter a recession next year as Europe ’ s largest economy shrinks by 0.7 percent — down 2.4 percentage points from previous forecasts.
Since the start of the war in Ukraine in February, Germany has been suffering from a worsening energy crisis due to Russia cutting off gas supplies to Europe as a result of sanctions and counter-sanctions between the West and Moscow.
Nord Stream Crisis 1 and 2
Russia cut gas supplies to Europe via Nord Stream 1 before suspending flows entirely in August.
Moscow has blamed Western sanctions for causing technical difficulties in transporting gas to Europe.
The new Nord Stream 2 did not enter commercial operations, as Germany canceled its plan to use it to supply gas, a few days before the start of the Russian military operation in Ukraine.
Nord Stream 1 and 2 experienced a new crisis after gas spilled below sea level this week, leading to recriminations over who was behind what was described as “deliberate sabotage. ”
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Public opinion on nuclear has shifted during the crisis, with 64% of Germans supporting a nuclear restart and 60% believing the nuclear exit was a mistake.

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Content: World Vision: Restarting nuclear power, dragging the German government into crisis
November 06, 2022 00: 03
Eastern Network Television
More News Clips
With Germany following the NATO sanctions against Russia, the German energy crisis is deepening and leading to serious political instability.
The gold-painted sign “Made in Germany ” has been peeled off. First, the business community complained about the high price of electricity in Germany, averaging 0.37 euros per kilowatt-hour (kWh), compared with 0.18 euros in France, 0.24 euros in the United Kingdom and 0.10 euros in Hungary.
Even if the German government proposed energy subsidies, but other European governments such as Britain and France will do so, German companies still can not compete. The result is that more and more industrial products that Germany was proud of in the past, either set up factories in foreign countries or import some foreign parts to complete in Germany.
In addition, some townships began to have problems with the opening up and strengthening of thermal power generation and transmission, and now there are rare power outages, which have caused great dissatisfaction among the public.
The Minister of Economy and Deputy Prime Minister Hajbek have become the target of attacks by the industrial sector, the German opposition, and the Liberal and Social Democrats in the government, focusing on Habek, who has no economic expertise but is responsible for the environmental ideology, and the government ’ s lack of understanding and compassion for industry, and has been deceiving the three nuclear power plants.
Halbek has always stressed that the German people have long been the majority of anti-nuclear power, but the latest poll shows that 64% of the people support restarting nuclear power to increase supply and reduce electricity prices due to the energy crisis, with 40% of the Green Party voters.
In addition, the Green Party has spoken out in favor of improving climate change, but has been hiding experts ’ suggestions that turning on nuclear power could cut Germany ’ s carbon emissions by 25 million to 30 million tons a year.
In addition, Halbek stressed that the nuclear fuel rods needed for the nuclear power plant may not be available by early next year, but the expert opinion is that the old nuclear fuel rods can also be used and the nuclear power plant can be gradually opened.
Halbek stressed that it would take a long time to open the safety inspection of nuclear power, but the world-famous German Technical Supervision Association immediately hit the face, claiming that they did a comprehensive inspection in March, all three nuclear power plants are normal, as long as limited further testing and monitoring, restart is not a problem at all.
The opposition party also criticized the three-party coalition government for delaying the setting of a gas price cap until March next year. At that time, the weather in Germany has begun to warm up. As a result, the opposition party and the public demand that Habaker resign, which can be regarded as the ruling coalition's biggest crisis to date.
Ph.D., Freie Universität Berlin

Polling indicates 67% support a five‑year extension of nuclear plants and 41% favor building new reactors, and the Bavarian prime minister has asked to reconsider the nuclear exit.

Title:

Content: “There is no excuse for the rich West to be oblivious to the global debt crisis. ” – The Guardian
We start with an opinion piece by Larry Elliott, the Guardian ’ s economic editor, entitled “The wealthy West has little excuse for finally waking up to the global debt crisis. ”
“After a decade or more of their obsession with their own problems, countries in the wealthy West have begun to pay attention to the threat of a looming debt crisis in the poorer parts of the world, ” he says at a meeting of the International Monetary Fund and the World Bank in Washington this week.
The good news is that debt has risen to the highest level on the policy agenda and is seen as a problem that needs to be regulated, IMF Managing Director Kristalina Georgieva said about the need for distressed countries to help: “Help them deal with the debt burden, which has made the shocks of past years more difficult; and help ensure that the IMF can continue to support them in the years to come. ”
The bad news, according to Elliott, is that Georgieva ’ s appeal has not yet been heeded, as rich countries are still primarily interested in their own problems.
The geopolitical rivalry between the United States and China is also not helping.
Creditor countries may wake up to the idea that there is a debt problem but it is far from a solution.
Talk is not like work. ”
Achim Steiner, director of the United Nations Development Programme (UNDP), said: “There are more than 50 countries on his radar that can default very quickly. ”
Steiner believes that the UN has no chance of meeting its ambitious 2030 development goals, unless there is urgent action.
The volume of lending by the private sector has made attempts to restructure or write off debt more complex than in the past.
At the time of the HIPC initiative, creditors tended to be either individual governments or multilateral organizations such as the World Bank.
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“But since the global financial crisis, many countries, especially middle-income countries, have borrowed heavily in financial markets, taking advantage of very low interest rates to finance domestic projects. ”
After the setback of the COVID-19 epidemic, low- and middle-income countries have since been hit by two other undesirable shocks: the war in Ukraine, which led to higher food and fuel prices, and the sharp increase in central bank interest rates in large Western economies.
The result is that debt servicing has become much more expensive, with many countries now frozen out of financial markets altogether.
Steiner said: "The issue is not financial but political.
The United States has mobilized $400 billion to secure Silicon Valley Bank deposits.
This is more than the developing world has received in three years.
It took the Swiss government less than 48 hours to find 100 billion Swiss francs to secure the rescue of one of its banks.
“The lesson of the recent banking crises is clear.
Rich countries can act fast enough when they want to, ” the writer concludes.
Fears of Macron ’ s politics
We turn to another Financial Times opinion piece by Alain Beatty, a trade writer, entitled “The Risks of Emmanuel Macron ’ s Strategic Insistence. ”
Macron ’ s focus on keeping a distance from both Washington and Beijing in pursuit of the EU ’ s vague “strategic autonomy ” is not an innovation among European policymakers, but geopolitical Europe enthusiasts need to recognize that the lack of unity and trust within the EU, rather than the sinister manipulation by Washington and Beijing, is the main obstacle.
“We ’ ve already seen this happen in trade policy, which is one area where the EU has long had the ability to act collectively.
In the same way that there is nothing stopping European governments from increasing military spending and playing a greater geopolitical role, the bloc can certainly increase its ability to use trade to project its strategic influence.
But while France has been keen to create new tools for intervening in trade and investment, other member states recognize that the views and interests of Paris are not necessarily those of the bloc as a whole.
“In recent years, the European Commission has carefully designed a range of trade instruments to confirm the bloc ’ s geo-economic weight.
The most politically salient is the anti-coercion tool ECI, which will allow the EU to use a wide range of trade and investment measures to retaliate against the bullying of trading partners.
France has strongly supported all this activity, and has also called for the creation of new EU central funds to pursue industrial policy.
“But the Commission will struggle to use this set of tools if there is opposition from other member states that are mindful of their export interests or distrust in using trade tools to manage a centralized strategic policy.
A few days before Macron ’ s trip, the Commission succumbed to pressure from some EU governments, including Germany, and gave member states a major role in determining the use of ECI.
Berlin instinctively avoids confrontation that could damage German exports and investments abroad.
There have also been more principled objections from liberal member states including Sweden and the Czech Republic, sceptical of attempts to politicize trade policy and the likelihood that it will be overly influenced by certain governments.
Macron inadvertently contributed to these concerns, especially as he unnerved some other EU governments two years ago with a clear orientation toward a major investment deal with China, “leaving a legacy of caution. ”
“Attempting to push a union with divergent views to adopt a single approach to a specific global issue is unlikely to produce long-term results. ”
German split on energy policy
We remain with an article by Laura Bettel, the Financial Times correspondent in Berlin, entitled “Germany is being torn apart by energy policy with the closure of nuclear plants. ”
Bethel said Germany ’ s last remaining nuclear power plants were shut down on Saturday, “marking a watershed moment in a country that has long had deep doubts about atomic energy. ”
Anti-nuclear activists hailed the shutdown of three reactors as a victory after a temporary delay following the start of the Russian-Ukrainian war that forced Berlin to look for alternatives to Russian gas.
Critics see the shutdown as an act of madness at a time when Europe ’ s energy supply remains precarious and the world is struggling to stop using fossil fuels.
After decades of anti-nuclear protests, the decisive moment came in 2011 when Chancellor Angela Merkel reversed an earlier decision to extend the life of the country ’ s nuclear plants until 2036, bringing the phase-out date to 2022.
The anti-nuclear movement in former West Germany dates back to the 1970s, when a popular campaign succeeded in stopping the construction of a nuclear power plant in the southwestern village of Weil.
The nuclear accidents at Three Mile Island in the United States in 1979 and at Chernobyl in 1986 fuelled that movement.
But German public opinion shifted after the Russo-Ukrainian War: an August 2022 poll from Der Spiegel found that 67 percent of Germans supported a five-year extension of the country ’ s nuclear plants.
41% supported the construction of new plants.
In a similar poll three decades ago, only 3% said yes.
But the German Green Party, now part of the three-way coalition government led by Olaf Schulz, only agreed to postpone the shutdown for a few months to fill any gap caused by the winter energy crisis.
“The way in which Germany has chosen to phase out nuclear power, and step back from fossil fuels as a bridging gap even as renewables increase dramatically, has been highly controversial. ”

Opposition figures, including the Christian Democrats, have urged reconsideration, but the federal government has ruled out reinstating nuclear due to cost and construction timelines.

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Content: German Chancellor rejects demands for his country ’ s return to nuclear energy - Sunrise Gate
Monday 4 March 2024 3: 47 PM Cairo Cairo 24 °
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German chancellor rejects calls for his country to return to nuclear power
German Chancellor Olaf Scholz
Zendelwingen (Germany) - DPA
Published on: Monday 4 March 2024 - 3: 34 PM | Last updated on Monday 4 March 2024 - 3: 34 PM
German Chancellor Olaf Schulz rejected the demands of his country to return to the use of nuclear energy in the generation of electricity, pointing in this regard to the high cost and long time required to rebuild nuclear plants.
Speaking at a vocational education centre in the city of Zendelwingen in the southwestern German state of Baden-Württemberg, Schulz said: “If someone decides now to build a nuclear power plant, it will be completed in 15 to 20 years according to the current construction times.
By then, we should have solved all our problems already. ”
The electricity generated by such plants costs twice as much as electricity generated from wind, solar or other production sources, Schulz said, noting that uranium stocks are ultimately limited.
"If we look back 20 years later, whoever made a less expensive and more efficient decision to produce electricity, it will be our country," he said.
In its draft new core program, the Christian Alliance (which leads the opposition in the country) expressed support for the use of nuclear energy and said it wanted to rely on "fourth-generation and fifth-generation nuclear power plants".
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Some accounts still report no broad societal push to bring reactors back online, with policy focus remaining on renewables expansion.

Germany is pursuing large‑scale renewable build‑out to replace nuclear and cut fossil fuels, targeting 215 GW solar, 110 GW onshore wind, and 30 GW offshore wind by 2030.

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Content: There were 1,584 press releases posted in the last 24 hours and 428,843 in the last 365 days.

Four questions for Germany’s big hydrogen power plan

The German government is proposing to invest billions of euros to support the roll-out of a wave of hydrogen-fired power plants. This is part of a move to phase-out coal plants and to deploy large volumes of wind and solar generation.

Details of the hydrogen plan – the Kraftwerksstrategie or KWS – became available on 5 February through a press release from Germany’s Federal Ministry for Economic Affairs and Climate Action 1 , which confirmed government agreement on the scheme. The plan is now subject to the approval of the European Commission and negotiations with the German parliament.

The planned hydrogen subsidies would have a transformative impact on both the German and European electricity markets. But discussions on the plans during 2023 were the privilege only of those inside ministries. Given the importance of these plans, the lack of public debate or transparency so far, especially at European level, is concerning.

In this context, and to inform the debate that will now start, we pose four questions: Why hydrogen? What are the ramifications for the European market? Where in Germany? By when should coal be phased out?

An unprecedented transformation of the German electricity system

Germany wants 80 percent of domestic electricity generation to be renewable by 2030, up from 44 percent in 2022 2 . Specifically, this involves reaching an installed generation capacity of 215 gigawatts solar, 110 GW onshore wind and 30 GW offshore wind by 2030, more than doubling existing capacities in the next six year 3 .

Germany’s governing coalition must also decide whether to bring forward the legally-specified coal phase-out date from 2038 to 2030. Bringing it forward would imply replacement of an additional 17 GW of lignite and coal plants by 2030 4 , on top of 13 GW of plants already scheduled for shut down.

All this means restructuring the electricity system at unprecedented speed. To accompany variable renewables, the deployment of clean-generation capacity that can smooth fluctuations in renewable output – both intra-day and across seasons – is necessary. However, exactly how much new capacity is required, and from which technology, is not clear.

What does Germany aim to do? Principles and compromises

The main thrust of the power plant strategy is to provide subsidies for hydrogen-fired power plants. The German government sees these plants as replacements for coal-fired plants that will shut down, and as complements to variable renewable generation, most likely by helping to balance longer-term fluctuations in renewable output. This is consistent with the German government’s grander ambitions for hydrogen. Plans are being drawn up for a hydrogen pipeline network that will cover 10,000 km by 2032 5 , and up to €20 billion will be spent developing the hydrogen industry between 2024 and 2027 6 .

The government originally wanted to support three types of plant: 1) hydrogen sprinters, 2) hydrogen hybrid, and 3) hydrogen-ready. Sprinters are purpose-built turbines that would run on hydrogen from day one. Hybrids involve the co-location of hydrogen capabilities alongside solar PV or onshore wind, which could even out the electricity sent to the power grid 7 . Hydrogen-ready plants would be plants with gas-fired turbines, and a requirement to provide a detailed roadmap showing how they will switch to hydrogen no later than 2040.

In August 2023, the Federal Ministry for Economic Affairs and Climate Action said it had completed negotiations with the European Commission over provision of state aid to these three types of plant 8 . Plans were drawn up to subsidise 4.4 GW of sprinters, 4.4 GW of hybrid plants, and up to 15 GW of hydrogen-ready plants. A first tender was intended for December 2023.

However, like so much of Germany’s planned climate expenditure, this agreement was thrown into question by a November 2023 constitutional court ruling that COVID-19 debt allowances could not be rolled over into Germany’s Climate and Transformation Fund (Klima- und Transformationsfonds, KTF), on the basis that the rollover would breach government spending rules 9 . The KTF would have been the source of the originally-planned subsidies for three types of hydrogen plant.

Therefore, a compromise was worked out, culminating in the government’s 5 February announcement 10 . The government now plans to subsidise a lower volume of 10 GW hydrogen-ready turbines and has scrapped plans for the 8.8 GW combined sprinters and hybrids. A tender process will offer state support for the construction and operation of four natural gas-fired power plants. Bidders should draw up plans for transitioning to hydrogen between 2035 and 2040. The estimated cost is €16 billion 11 .

This would create a demand for hydrogen of 20 TWh annually once all plants are converted, assuming 1,000 running hours per year 12 . Demand of 20 TWh is significant but not disproportionate in the context of wider plans. Total German hydrogen demand today is 55 TWh, of which almost none is supplied as clean hydrogen produced using renewable electricity 13 . The German national hydrogen strategy sets a target for between 40 TWh and 75 TWh total clean hydrogen demand in 2030 (BMWK, 2023).

Until plants are converted to hydrogen, they will consume natural gas, again estimated at a 20 TWh annual consumption. This compares to typical annual German gas demand of 800 TWh, which will be substantially lower by 2030.

Read the full analysis at the original link.

About the authors

Ben McWilliams is working for Bruegel as an Affiliate fellow in the field of Energy and Climate Policy. His work involves data-driven analysis to critique and inform European public policy, specifically in the area of the energy sector and its decarbonisation.

Georg Zachmann is a Senior Fellow at Bruegel, where he has worked since 2009 on energy and climate policy. His work focuses on regional and distributional impacts of decarbonisation, the analysis and design of carbon, gas and electricity markets, and EU energy and climate policies.

A €28 billion plan approved by the European Commission aims to accelerate wind and solar expansion through 2026 on the path to 80% renewable electricity by 2030.

Title:

Content: Thursday 22 December 2022 Abu Dhabi UAE
Prayer times
News Highlights
Today 's Issue
Today 's Issue
Arabic & International
EU approves German renewable energy plan
A solar and wind farm
December 21, 2022 18: 44
The European Commission said on Wednesday it had approved a 28 billion euro ($29.69 billion) renewable energy support plan from Germany aimed at accelerating the expansion of wind and solar power.
This plan will replace the current scheme to support renewable energy and will be valid until 2026.
The plan aims to meet Germany ’ s goal of producing 80 percent of its electricity from renewable sources by 2030.
The European Commission said the plan was "necessary and appropriate" to encourage the use of renewable energy and reduce emissions that are warming the planet.
EU Competition Commissioner Margrethe Vestager said in a statement: “The German Renewable Energy Act 2023 plan will accelerate the reduction of carbon use in electricity production.
Source: Reuters
All rights reserved to Al Ittihad Newspaper 2022 ©

Grid bottlenecks are a critical challenge, and Germany plans major transmission upgrades, including north‑south reinforcements and new interconnections.

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Content: A state-owned Dutch company, the biggest electricity grid operator in Germany, said on Thursday that talks to sell its German business to the Berlin government have ended.

TenneT, one of four transmission network operators in Germany, announced plans for the talks back in February 2023, saying at the time it needed a "structural solution" to funding needs for its German business as the grid is bolstered to handle the transition to renewable energy, which it put at about 15 billion euros ($16.1billion).

The transmission lines are vital for Germany's plans to completely shift its power production from fossil fuels to renewable energy by 2045 at the latest. At present, some of the electricity generated by wind farms in northern Germany can't be dispatched to the south due to lack of transmission capacity.

The German government has now informed the Netherlands that "it cannot deliver on the planned transaction due to budgetary challenges," TenneT said in a statement Thursday. Chancellor Olaf Scholz's three-party coalition is currently rowing about how to put together a 2025 budget while adhering to Germany's tight self-imposed rules on running up debt.

This has already forced a hasty, court-mandated rehash of the 2024 budget, complete with subsidy cuts that prompted protests by farmers. TenneT, which also runs the electricity grid in the Netherlands, spoke of "tapping into public or private capital markets for a structural funding solution for its German operations."

They further added that the German government "is committed to support such alternative solutions."

TenneT seeks funding for extensive grid investments and plans about €100 billion in upgrades in Germany and the Netherlands, while Amprion is committing €22 billion by 2027 and has contracted thousands of kilometers of new cables.

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Content: TenneT lines up 8 bln-euro credit ahead of German operations sale

AMSTERDAM, June 14 (Reuters) - Electric grid operator TenneT Holding (IPO-TTH.AS) said on Wednesday it has signed an 8 billion euro ($8.63 billion) credit facility to support its spending plans as it awaits a deal to sell its German operations to the German state.

TenneT, owned by the Dutch state, expects to invest more than 100 billion euros in the coming decade to build out infrastructure in Germany, the Netherlands and in the North Sea to support the growing use of renewable energy.

Governments of the two countries have said they hope to agree a deal on the sale of TenneT Germany this summer and close a deal by the end of 2023, though talks have been going slowly.

TenneT, which had a debt-heavy balance sheet of 38.5 billion euros at the end of 2022, in March estimated equity needs at its German arm of 15 billion euros and of 10 billion euros at its Dutch arm.

The company said on Wednesday a "deal would enable the creation of two strong national players, controlled and funded by their respective governments."

TenneT said the 2.5-year facility is provided by BNP Paribas, ABN AMRO, BNG, Commerzbank, Deutsche Bank, ING, Rabobank, Santander, SMBC Nikko, and UniCredit.

($1 = 0.9271 euros)

($1 = 0.9268 euros)

Reporting by Toby Sterling, Editing by Louise Heavens and Sharon Singleton

Our Standards: The Thomson Reuters Trust Principles.

Germany is also investing heavily in hydrogen as a flexibility and decarbonization tool, planning to spend €20 billion by 2027, subsidize 10 GW of hydrogen‑ready turbines, and build a 10,000‑km hydrogen pipeline network by 2032.

Despite economic headwinds, Germany cut greenhouse gas emissions by 10.1% in 2023 and remains committed to net‑zero by 2045.