IW study: Electricity costs for the German economy will soon be "completely unaffordable"

IW researchers call for a faster expansion of renewable energies. (Archive image) © Jens Büttner/dpa/Archivbild

IW researchers call for a faster expansion of renewable energies. Otherwise, energy costs for industry would become "completely unaffordable" in the future.

Berlin – In Germany, there is a fierce debate about the direction of climate policy and the future of domestic industry. According to a recent study, however, our country must above all follow up its words with deeds as quickly as possible – and massively accelerate the expansion of renewable energies and the associated pipeline networks now until 2030 if it wants to keep its industry at the location.

IW study: Faster expansion of renewable energies called for

This is the result of an as yet unpublished study by the industry-oriented Institute of the German Economy (IW), from which the newspaper Rheinische Post reports in advance. According to the report, German natural gas consumption will fall by around 2030.17 percent or 5 terawatt hours by 136 compared to 2022. However, the demand for electricity will increase to the same extent, as companies and consumers will increasingly have to electrify their consumption.

"The targeted share of renewables of 80 percent by 2030 therefore refers to higher total electricity consumption, so that the pace of expansion of wind and photovoltaic plants must pick up speed significantly," write the IW researchers. Above all, the pace of expansion must increase dramatically so that energy costs for industry do not become completely unaffordable.

"Business as usual" is not an alternative in view of the significantly deteriorated price situation for fossil fuels. A transitional period of several years with no prospect of foreseeable better location conditions is too long for the entrepreneurial investment horizon.

Electricity costs: State funds needed

"The broad and cost-effective availability of renewable energies and the green energy sources generated from them are the key to making the natural gas bridge smaller than previously planned, and thus making the heat and transport transition a success in addition to the energy transition. The sooner this succeeds, the sooner profitable climate-friendly business models will emerge that do not require government support," the study says. "Until then, state funds with the highest priority for infrastructure expansion are needed." (lma/Reuters)