Understanding the energy crisis
Dear Reader,
Energy is one of the most fundamental parts of any economy. Cheap supplies keep prices down, keep industry competitive, and keep people in jobs. Secure supplies keep the lights on and our homes warm.
A year ago those were all such self-evident statements that we never gave them much thought.
Not anymore.
Germans are now afraid that the lights will go off and that gas will be rationed. Even if the doomsday scenarios don’t happen, we know already that higher energy costs are stoking record inflation and risk driving industry and jobs abroad.
How do we make sense of all of this? Here are a few articles from the archive that might help.
Getting to grips with the basics. What energy sources does Germany rely on? Where does it buy this energy from? How important have renewables become? And is it realistic to believe that Germany could become energy independent in the near future? A look at the key numbers.
One of the key planks of German energy policy is the so-called Energiewende, the switch from fossil fuels to renewables. This transformation relies on energy being taken from the north, where the wind blows, to the south, where big industry is situated. I tell the story of ‘the artery of the German energy revolution’ and why it has proved so hard to build.
Are there untapped sources of energy that Germany could use but so far has refused to do so? Yes, there are actually huge shale gas reserves under Germany. I look at just how significant these are and why they are unlikely to ever be tapped.
What about the coming winter? Does Germany have enough gas to last until next Spring? Or will its reserves run out in the coldest months of the year? Here’s what officials and analysts have been saying on the issue.
Finally, I recently interviewed Dr. Harald Schwarz, a German engineer who has spent his whole career researching ways to create a carbon-neutral electricity grid. He told me that Germans have been “brainwashed” to believe that renewables are the answers to all their prayers. In fact, they have been integrated into the grid too quickly, making a blackout much more likely, he believes.
Or to quote him:
“It is absolutely crazy to to switch off the existing system before the new system is completely running and that’s what they are trying to do in Germany.”
Regards,
Jörg Luyken
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