Germany: The world’s dumbest energy policy

by Schmitt Trading Ltd, Feb 11, 2022

This overhasty and ideologically charged energy policy is clearly reflected above all in the rapidly rising electricity prices. In parallel, the price of gas has quadrupled and German gas storage facilities are at an all-time low.

This is not only what I say, but also what the Wall Street Journal says. This overhasty and ideologically charged energy policy is clearly reflected in the rapidly rising electricity prices. Currently, we consumers pay 0.346 Euros per kWh, which is the highest electricity price in the world. And the trend is still rising, because at the end of 2021, three of the last six nuclear power plants and several coal-fired power plants in Germany will also be shut down as part of the hasty energy turnaround, further exacerbating the overall situation. In parallel, the price of gas has quadrupled and German gas storage facilities are at a low. In addition, the North Stream 2 gas pipeline has been put on hold for the time being and the country is engaged in dangerous verbal sparring with Russia, on which it is largely dependent. So all in one suboptimal.

The head of the Kiel Institute for the World Economy, Prof. Dr. Stefan Kooths, also attests to the failure of politics and that it is lying into its own pocket – all this at our expense. Not only are we endangering the country’s security of supply, but also our competitiveness.

The energy turnaround – a costly wrong decision

Cheers! ‘Climate backtracking’: Germany Pushes for G-7 Reversal on Fossil Fuels in Climate Blow – ‘U-turn in global efforts to fight climate change’

by Bloomberg, June 25, 2022 in Climate Depot

Germany is pushing for Group of Seven nations to walk back a commitment that would halt the financing of overseas fossil fuel projects by the end of the year, according to people familiar with the matter. That would be a major reversal on tackling climate change as Russia’s war in Ukraine upends access to energy supplies.

A draft text shared with Bloomberg would see the G-7 “acknowledge that publicly supported investment in the gas sector is necessary as a temporary response to the current energy crisis.”

The caveat in the proposal is that such funding is done “in a manner consistent with our climate objectives and without creating lock-in effects.”

The text remains under debate and could change before G-7 leaders hold their summit in the Bavarian Alps starting Sunday hosted by Chancellor Olaf Scholz. The UK opposes the proposal, two of the people said. A German government spokesman declined to comment.

EU Leaders Brace for Hard Winter as Russia Tightens Gas Grip

A person familiar with the discussions said Italy wasn’t actively opposing the German proposal. Italy, like Germany, is highly dependent on Russian gas. On Friday, speaking during a press conference in Brussels, Prime Minister Mario Draghi said Italy has managed to reduce Russian gas imports from 40% last year to 25% at the moment. This has been possible also by signing new gas deals in countries including Congo, Algeria and Angola.

Germany has responded to the cuts by reviving coal plants and providing financing to secure gas supplies, while continuing with plans to phase out nuclear energy. The World Nuclear Association, an industry lobby group, is urging the G-7 to boost access to nuclear technologies.