War on Subsidies: Brussels Questions German Energy Revolution

Spiegal Online ^ | May 29, 2013 | Frank Dohmen & Gerald Traufetter

[JeepersFreepers]

Experts with the Institute of Energy Economics at the University of Cologne estimate that [German] consumers will have to pay more than €100 billion by 2022 for renewable energy facilities that have already been installed. Of the 28 cents household customers pay per kilowatt-hour of electricity today, 5.28 cents already applies to the [Renewable Energies Act] levy, and that figure is growing.

There are many reasons for the cost explosion. Contrary to earlier forecasts, solar and wind farms are a long way from being able to produce energy at the prices possible in coal-fired or nuclear power plants. There are also high costs associated with grid expansion and electricity storage facilities -- both necessary for a system more reliant on renewables -- as well as for backup power plants, which take up the slack when the sun isn't shining or the wind isn't blowing. In addition, the German government failed to define upper limits for solar energy, an expensive form of energy that is inefficient in a country like Germany, with its relative lack of sunshine.

[JeepersFreepers]

All this green energy does is make Germany and other European nations uncompetitive and shifts manufacturing to China. The increase in CO2 generation in China will more than offset the reduction in Europe. Germany and other European Nations are taking an economic hit for no benefit even under the assumption that there is a benefit from reducing CO2. What incredible stupidity!

The graph below is enlightening. With our lower cost and abundant energy, especially with the fracking technology, we should be entering a period of unparalleled prosperity with low cost production and transportation. Low cost energy should provide the opportunity to pay higher wages while being world competitive. Unfortunately the Obama regime is wasting this wonderful opportunity with his war on coal, impeding drilling on federal land, green energy subsidies, EPA regulations making it impossible to build new plants using hydrocarbon feedstock, denying pipeline permits, crony capitalism, etc.

[Vince Ferrer]

This is why it is so important to keep our energy prices low. We can’t compete with low wage countries on wages, but we can compete with other countries on energy costs.

[keving]

I see AlGore between those lines. Just like Selling Energy Credits without the farce or a “market” to sell them.