Megalomaniac German Energiewende bogged down by lack of money.
For years, critics of the Energy Wende pointed to the harmful effects of the German energy policy, the German reliable and affordable energy in a relatively short time was transformed into a priceless and unreliable system. Citizens and businesses pay the bill.Energy intensive companies are leaving Germany, while political stupidity and obstinacy prevent the failure is recognized and the case is canceled.
Meanwhile, there is a destruction of capital breathtaking scale occurred, so that the sources of the electricity companies, which are necessary to fund the Energy Wende have dried.
Under the title, "Merkel Losing Allies in $ 700 Billion Shift to Renewables," wrote Stefan Nicola and Tino Andresen for Bloomberg Businessweek:
Chancellor Angela Merkel is losing support from her two biggest allies in the utilities industry As their mounting debt prompts a retreat from renewable-power expansion, mining under her $ 700 billion program to reshape Germany's energy market.
EON SE (EOAN) and RWE AG (RWE) are clean-Reducing spending power for the first time since 2009 to cut a combined 69 billion euros ($ 88 billion) in debt and curb costs. That limits funds for offshore wind energy, the centerpiece of Merkel's plan to replace all atomic reactors by 2022 and triple renewables' share by 2050.
With consumer power bills increase increasing and Merkel facing elections in September, Germany's energy policy is rising on the political agenda. The cost of developing wind farms in the North Sea has surged following construction glitches and delays in linking turbines to the grid. "The entire energy switch has derailed," Marc Nettelbeck, an analyst at DZ Bank AG, said this week by phone from Frankfurt."The Difficulties connecting offshore wind farms to the power grid Reduces Their profitability and renders the original investment calculations utilities or invalid."
Merkel has Sought to spur development of wind farms at sea - Typically where gusts are strong enough to keep turbines generating around the clock - because most renewable sources can not providence constant, or baseload, like nuclear power plants. The connection setbacks are "problematic for base load power capacity and can lead to the failure or delay of the energy switch," Nettelbeck said. ...
EON, the country's biggest utility, said last month it will lower clean-energy investments to less than 1 billion euros in 2015 from 1.79 billion euros last year.RWE renewables will cut annual spending in half to about 500 million euros in the next two years. ...
Utilities' withdrawal from renewables targets May Threaten Germany's goal to have 10,000 megawatts of offshore wind capacity by 2020, two years before the last remaining nuclear plants shut permanently. The government sees offshore wind at 25,000 megawatts by 2030 - up from about 280 megawatts now - as it implements its 550 billion-euro plan to replace reactors.
"The offshore expansion in Germany is much slower than anticipated by politicians," said Marc Oliver Bettzuege, head of Cologne University's Energy Economics Institute. Without a focus on wind from "financially strong investors" such as EON and RWE, Germany will need to import a "large amount" of clean power to reach its goals, he said.
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