Arsen Lazarevič's notebook: Road to nowhere
German green energy subsidies are set to be pushed up once again – to 6.8 euro cents per kilowatt-hour. This despite Chancellor Angela Merkel stating in 2011 that she wanted a freeze at 3.5 cents.
The German Energiewende [Energy transition] – meaning the single-minded pursuit of dominance for renewable energy sources – will certainly turn out to be a dead-end policy and will likely bring Germany some very negative economic consequences.
For one, it is making electricity more expensive for homes and businesses, thus reducing the latter’s competitiveness. At the same time, it is devastating the energy market – electricity prices on the open market continue to be at historic lows, but that has not been reflected in consumers’ bills.
And while nuclear power plants are being decommissioned, coal-powered electricity plants are becoming the only profitable traditional energy source. Primarily those fuelled by dirty brown coal. Indeed, such stations are becoming ever more important to the maintenance of a stable electricity grid. And so, ironically, the Energiewende programme is actually polluting the very environment it is supposed to protect.