Many of Germany’s companies, investors, economists, and neighboring countries are worried about Germany’s move to introduce a large-scale renewable energy program.
The country faces enormous costs to replace a system that was already in effect and working, with a project to start utilizing cleaner energy sources. In their effort to gradually wean off nuclear and fossil fuel energy, Germany’s Energiewende plans to spend a trillion Euros to do so. The North Sea wind farm Bard 1, is expected to have 80 turbines that can produce sufficient electricity to power Munich.
Kurt Block, CEO of BASF SE said that the German industry will soon lose its competitive nature so long as they continue down the current course. Current energy prices have escalated by 60% over the past five years and are not double of what consumers in the U.S. have to pay. Germany’s GDP for the second quarter slumped by 0.6%, leaving the Euro-zone flat for the quarter.
The E.U. has set targets for its countries to generate 35% of their power through renewable means. Germany wishes to reach a much higher target of producing 40% to 45% of their total energy by renewable means, and scaling it to 80% by 2050.
Chancellor Angela Merkel led the catalyzed approach to reduce usage of nuclear energy after 2011s Fukushima disaster. She hailed Energiewende as a huge contribution towards curbing global warming and stopping the global dependence on nuclear power.
75% of Germany’s small-scale and medium-scale businesses have already reported that they are not comfortable with the rising energy costs, while international companies find the country less appealing for business due to the new project.