Germany’s CO2 and energy policy – about to falter?

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Fred F. Mueller:

On April 16th, 2014, a few quite remarkable statements were delivered during a discussion event at the premises of SMA Solar Technology AG, a leading German producer of photovoltaic panels and systems:

“The truth is that the Energy U-Turn (“Energiewende”, the German scheme aimed at pushing the “renewable” share of electricity production to 80 % by 2050) is about to fail”

“The truth is that under all aspects, we have underestimated the complexity of the “Energiewende”

“The noble aspiration of a decentralized energy supply, of self-sufficiency! This is of course utter madness”

“Anyway, most other countries in Europe think we are crazy”

Had this been one of the small albeit growing number of German “sceptics” casting doubt upon the XXL-sized politico-economical scam that has cost the German populace more than € 500 billion since its inception in 2000, it would not have gotten more than a footnote in the local press, crammed somewhere in between “horoscope” and “lost and found”. In fact, the media actually tried to keep a lid on the facts by giving them as little coverage as possible.

But the man at the speaker’s desk was Sigmar Gabriel, acting vice-chancellor of the German government, Secretary of Commerce with responsibility for the said „Energiewende” and chairman of the German social democrats (SPD), the second-largest political force in the country. Since December 2013, he is in charge of taming the runaway costs and growing security of supply risks that are unmasking the financial and technical nightmare of this ill-conceived project. In the past few months, he seems to have gotten some unpleasant insights causing him to admit the above-mentioned inconvenient truths when he was pushed too far by a number of aggressive lobbyists of the “renewable energy” sector. Gabriel, famous for his irascible temper that once already resulted in a heated verbal exchange with a top-dog TV journalist live on air, appears to have become quite candid when he vented his anger during the debate.

He must have realized his own political fate is in jeopardy because the task he has been assigned has conducted him into a situation that will inevitably result in failure. With respect to electric energy generation, Germany has painted itself into a corner. Since the introduction of the “Renewable Energy” law (EEG) in 2000 aimed at replacing coal and gas-fired as well as nuclear power generation by so-called renewable energy sources, the household price for electricity has jumped by more than 200 %. German customers now pay the second-highest electricity prices in Europe. At the same time, the task of stabilizing the grid against the massive erratic influx from solar and wind power plants that produce without regard for actual need has pushed the operators to their limits. Now already, with a combined share of just some 13 % of total electricity production, their unreliable input is massively imperiling the stability of the grid.

Conventional power plants – the most important units able to compensate these detrimental effects – are being pushed out of the market and shuttered at increasing rates. At the same time, Germany’s CO2 output has not diminished because coal-fired units have had to take over from closed nuclear plants. Costs are set to rise further on a ballistic path while security of supply is in free fall.

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Meanwile in the United States: U.S. electricity prices may be going up for good

LA Times: Experts warn of a growing fragility as coal-fired plants are shut down, nuclear power is reduced and consumers switch to renewable energy.

As temperatures plunged to 16 below zero in Chicago in early January and set record lows across the eastern U.S., electrical system managers implored the public to turn off stoves, dryers and even lights or risk blackouts.

A fifth of all power-generating capacity in a grid serving 60 million people went suddenly offline, as coal piles froze, sensitive electrical equipment went haywire and utility operators had trouble finding enough natural gas to keep power plants running. The wholesale price of electricity skyrocketed to nearly $2 per kilowatt hour, more than 40 times the normal rate….

(Complaints from California residents abound)

The problems confronting the electricity system are the result of a wide range of forces: new federal regulations on toxic emissions, rules on greenhouse gases, state mandates for renewable power, technical problems at nuclear power plants and unpredictable price trends for natural gas. Even cheap hydro power is declining in some areas, particularly California, owing to the long-lasting drought.

“Everywhere you turn, there are proposals and regulations to make prices go higher,” said Daniel Kish, senior vice president at the Institute for Energy Research. “The trend line is up, up, up. We are going into uncharted territory.”

New emissions rules on mercury, acid gases and other toxics by the Environmental Protection Agency are expected to result in significant losses of the nation’s coal-generated power, historically the largest and cheapest source of electricity. Already, two dozen coal generating units across the country are scheduled for decommissioning. When the regulations go into effect next year, 60 gigawatts of capacity — equivalent to the output of 60 nuclear reactors — will be taken out of the system, according to Energy Department estimates.

The Federal Energy Commissioner, Obama appointed Philip D. Moeller doesn’t argue against the regulatory changes but only says they are being enacted too quickly.

The loss of coal is being exacerbated by problems at the nation’s nuclear plants. Five reactors have been taken out of operation in the last few years, mainly due to technical problems. Additional shutdowns are under consideration.

At the same time, 30 states have mandates for renewable energy that will require the use of more expensive wind and solar energy. Since those sources depend on the weather, they require backup generation — a hidden factor that can add significantly to the overall cost to consumers….(snip)

…In some cases, the renewable power costs as much as twice the price of electricity from new gas-fired power plants.

Gee, so the LA Times is suddenly concerned about high energy prices? What about their fellow Californians?

The push to wean California off fossil fuels for electricity could cause a consumer backlash as the price for doing so becomes increasingly apparent, warns Alex Leupp, an executive with the Northern California Power Agency, a nonprofit that generates low-cost power for 15 agencies across the state. The nonprofit was formed decades ago during a rebellion against the PUC and the high prices that resulted from its regulations.

“If power gets too expensive, there will be a revolt,” Leupp said. “If the state pushes too fast on renewables before the technology is viable, it could set back the environmental goals we all believe in at the end of the day.”

First Democrat voters are now starting to wise up about Obamacare and now they are getting upset about Obama’s eco-fanatic supported energy plan? This is going to be a very interesting election year when summer hits.

It occurs to me that if Germany and the rest of Europe had not hitched their wagon to this falling star, they (and we) would be better prepared to stand up to the intimidation of Putin. Oh, well.

Also, the phrase “necessarily skyrocket” comes to mind.

Just how do you “wean off” fossil fuels for electricity? You can shut the plants or raise prices, but the consumer doesn’t know, or really care, where the juice comes from. Nicht wahr?