Putin's full war chest: The price of the delayed energy transition
Created: 06/18/2022, 09:00
Prof. Claudia Kemfert is head of the Energy, Transport and Environment department at the German Institute for Economic Research (DIW) in Berlin.
© Michael Kappeler/N.
Bruckmann/M.
Litzka
Russia is supplying less and less gas to Europe and Germany.
There is also another price jump.
Now at the latest it has become clear that the political and economic price for slowing down the energy transition is enormous, writes Prof. Claudia Kemfert from the German Institute for Economic Research (DIW) in the guest article.
Berlin – The chain of missed opportunities related to the energy transition is long.
But it's worth taking a closer look.
Because in the last 20 years, a lot of effort has been put into creating a distorted picture of the allegedly expensive energy transition.
In favor of fossil industries, of course.
The alleged costs of the energy transition
"Energy transition costs one trillion euros!" trumpeted the then Environment Minister Altmaier in 2013.
Others “only” spoke of hundreds of billions.
But it was always clear: it would be better to invest all that money in fossil fuels than in renewable energies or saving energy.
And so it happened.
The calculation was wrong back then.
The alleged costs were not only much too high.
They also confused them with investments.
In other words, the many benefits of the energy transition and the associated income and profits were kept secret.
Anyone who pointed this out was mocked.
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What can we do about the climate crisis without jeopardizing our competitiveness?
How do we secure our pension?
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The strategy worked.
The energy transition was successfully slowed down.
Fossil natural gas boomed as a “bridging technology”.
Billions flowed into "stranded investments" and fossil "lock-ins" developed, dependencies that we feel painfully today.
Massive barriers and obstacles were set up for (or better: against) the expansion of renewable energies: too few and incorrect tenders, special levies and complicated approval procedures.
It was not the energy saving that was rewarded, but the energetic renovation of the building.
The energy-intensive industry was rewarded with lavish exceptions.
Putin's war chest is full while Germany begs for fossil fuels
The political price is enormous: while Denmark smiles wearily at a Russian gas import ban, our government rushes from one crisis meeting to the next.
We are dependent and open to blackmail from fossil energy suppliers.
Putin's war chest is plentiful while we beg for fossil fuels around the world.
And the climate catastrophe announces itself with ever stronger extreme weather.
And economical?
Within 100 days we pay 12 billion euros for the import of fossil fuels - only to Russia.
In the last ten years we have paid almost a trillion euros for fossil imports alone - not the energy transition, but "the non-energy transition" cost a trillion.
Here's the receipt, Mr. Altmaier!
The share of renewable energies in Germany today could be 80 percent or higher.
There would be over 150,000 valuable industrial jobs in photovoltaics and we would be less dependent on supply chains, particularly from China.
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There would be enough trades and companies that could now implement the complete conversion to renewable energies and energy saving.
Wind distances would not be an issue, since thanks to citizen participation, thousands of wind farms benefit financially.
Solar energy on every roof - in combination with home batteries - would reduce electricity costs.
As previously announced, the aviation industry would have consistently invested in e-fuels.
Vehicles would be predominantly electric, rail and public transport would be attractive and inexpensive.
Energy transition: Renewable energies have a price-lowering effect
Even the delayed energy transition proves: Renewable energies are having a price-lowering effect on the electricity exchange and are already saving up to nine billion euros in a few months.
The cost of renewables has fallen massively, benefiting all countries, especially developing countries.
And storage batteries, electromobility or e-fuels could have become an export hit.
would have.
well
Anyone who is currently shouting: “Not now” is making the same mistake again.
We must finally change course!
The omitted investments of the last 20 years would have created brilliant added value and valuable jobs that make an economy permanently resilient.
The benefit of this development would have been gigantic - and it still is.
"Now more than ever," is the motto.
About the author: Prof. Claudia Kemfert is head of the Energy, Transport and Environment department at the German Institute for Economic Research (DIW) in Berlin and Professor of Energy Economics and Energy Policy at the Leuphana University of Lüneburg.