Germany's energy transition (Energiewende) supposedly serves as a role model for other countries. There are high hopes that Germany's know how in renewable energy will lead to a competitive advantage on future energy markets. This may be the case but so far the story is not off to a good start. In order to plug the gap left by decommissioning nuclear plants and to even out intermittent wind and solar energy, utility companies find it most profitable to use coal power. The economics of the energy markets is unambiguous, as this Bloomberg analysis shows.
Dieter Helm (whose new book we introduced here on Klimazwiebel some weeks ago) comments as follows: “Germany is currently switching from nuclear to coal, and from gas to coal -- about the worst thing that could be done from a climate change perspective... Its current energy policy is not going to reduce its real emissions.”