The German economy will need $1 trillion to deal with the risks of an energy crisis, according to Bloomberg.
This amount is required to increase renewable energy production. The government claims this is "the boldest project" in the last 80 years. Experts at Bloomberg estimate that the German authorities will have to spend $1 trillion to eliminate the risks of an energy crisis in the country by 2030.
First of all, these funds will be used to upgrade power grids. Later on, Germany is expected to gradually phase out the use of coal and nuclear plants, handle increased demand for electric cars, as well as fulfill climate commitments.
To date, Germany’s authorities have allocated $275 billion for these needs. However, the costs may well rise during the project implementation. At the same time, some experts doubt that the country can pull it off at all.
The project will require an imminent installation of solar panels covering the equivalent of 43 soccer fields, German Chancellor Olaf Scholz said. In addition, the government will have to ensure the continuous operation of 1,600 heat pumps as well as the construction of 27 onshore and 4 offshore wind plants weekly. Estimates from Germany’s network regulator and think tank Agora Energiewende show that Europe's biggest economy will need to generate 250 GW by 2030 amid ever-growing demand.
Although there may be some bottlenecks in the fight against the negative effects of the energy crisis, the country will be able to carry out the mission, Bloomberg experts sum up.
