Germany’s green energy dream turns into a NIGHTMARE: economic collapse, environmental failures and geopolitical tensions
By ljdevon // 2025-01-04
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  • Germany’s over reliance on intermittent renewable energy sources like wind and solar has led to an energy crisis, exacerbated by the phenomenon of Dunkelflaute (periods of no wind or sunlight).
  • Electricity prices in Germany are the highest in Europe, reaching €900/MWh during crises, compared to €250/MWh in nuclear-powered France.
  • The hasty phase-out of nuclear power in 2011 has left Germany dependent on coal, lignite and energy imports, making it the second-largest CO2 emitter per unit of energy in Europe.
  • Industries, including major players like VW and BASF, are relocating due to unsustainable energy costs, threatening Germany’s economic stability.
  • The crisis has created geopolitical tensions, with neighboring countries facing unaffordable energy prices and considering withdrawing from energy agreements.

Germany is in an energy crisis, as wind and solar fail to provide adequate power

Germany, once celebrated as Europe’s green energy pioneer, is now grappling with a self-inflicted energy crisis that threatens its economy, environment and geopolitical standing. The country’s ambitious transition to renewable energy, while commendable in its intent, has exposed the vulnerabilities of a system overly reliant on intermittent sources like wind and solar. The term Dunkelflaute — meaning “flat, dark calm” — has become synonymous with Germany’s energy woes. These periods, characterized by a simultaneous lack of wind and sunlight, are particularly severe during winter months when energy demand peaks. On December 12, 2024, Germany’s wind and solar power production plummeted to just a fraction of its needs, highlighting the precariousness of its energy grid. Despite renewable energy accounting for nearly 60% of Germany’s electricity production in the first half of 2024, these figures mask the reality of intermittent supply. For instance, on December 12th of this year, German electricity production from wind and solar power was 1/30th the demand for it. During Dunkelflaute episodes, wind and solar production can drop to less than 20% of capacity, forcing the country to rely on coal, lignite, and energy imports from France, Denmark, and Poland.

Economic, environmental, and geopolitical fallout

The economic consequences of Germany’s energy policies are staggering. Household electricity prices in 2024 averaged €400/MWh, peaking at €900/MWh during crises — three times higher than in France and Finland. For industries, these costs are unsustainable. Energy-intensive sectors like metallurgy and chemicals are particularly hard hit, with companies relocating to countries with cheaper energy. While big names like VW, BASF, and Mercedes-Benz dominate headlines, the real victims are small and medium-sized enterprises (SMEs) that collapse under the weight of exorbitant energy costs. This industrial exodus threatens to hollow out Germany’s economy, once the powerhouse of Europe. Germany’s green energy transition has backfired environmentally. The phase-out of nuclear power in 2011, driven by the Fukushima disaster, has forced the country to rely on coal and lignite to fill the energy gap. In 2024, Germany remained the second-largest emitter of CO2 per unit of energy produced in Europe, emitting ten times more than France. This reliance on fossil fuels undermines the very purpose of renewable energy policies, turning Germany’s green dream into an environmental nightmare. Germany’s energy crisis has far-reaching geopolitical implications. High electricity prices in Germany spill over into neighboring countries, making energy unaffordable and fostering resentment. In 2024, the household price of electricity in Germany was the highest in Europe, at €400/MWh, reaching peaks of €900/MWh. Discussions are now emerging about withdrawing from energy agreements, further destabilizing Europe’s energy landscape. Germany’s energy missteps serve as a stark reminder of the need for balanced, pragmatic energy policies. The country’s overzealous pursuit of renewables, combined with the hasty abandonment of nuclear power, has created a perfect storm of economic decline, environmental degradation, and geopolitical tension. Germans must now cope with extreme energy prices and intermittent loss of power. Sources include: GatestoneInstitute.org EuroNews.com IEA.org
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