According to Bloomberg, it will cost Germany $1 trillion to deal with the risks of the energy crisis. These costs are estimated to pay off by 2030.
The country is predicted to allocate about $1 trillion to increase renewable energy production and overcome the risks of the energy crisis by 2030. It is considered to be Germany’s most ambitious project in 80 years.
These costs will include investments in power system upgrades to cope with the abandonment of coal and nuclear power plants. Moreover, demand for electric vehicles and new heating systems is expected to grow as part of climate protection obligations. Germany has already allocated some $275 billion, but the final cost of this project will be much higher.
Chancellor Olaf Scholz said that the country is planning to install solar panels covering an area equal to 43 soccer fields, ensure the seamless operation of 1,600 heat pumps, and build 27 onshore and 4 offshore wind farms weekly. In light of the ever-growing demand for energy, Germany should reach a capacity of about 250 gigawatts by 2030, think tank Agora Energiewende estimated.
According to Robert Habeck, the Federal Minister for Economic Affairs and Climate Action, this is going to be the most daring project since the reconstruction of Germany after the Second World War.
In 2022, Europe’s electricity generated from renewable sources (22%) overtook natural gas (20%) for the first time. Last year, supplies of Russian natural gas to Europe, primarily to Germany, decreased sharply, which fuelled energy crisis concerns. So, EU leaders introduced a series of measures aimed at fuel and energy saving.
