Germany is collapsing due to renewable energy sources, electricity prices have skyrocketed
Germany is taking further hits due to the instability of renewable energy sources. Photovoltaic, wind, and hydroelectric power plants are unable to meet energy consumption, forcing the country to purchase energy on a large scale. However, this could be costly, as energy prices for the following day are reaching twenty-year highs.
The rapid shutdown of nuclear and coal power plants and the transition to renewable energy sources is once again taking its toll in Germany. As current data on spot electricity prices show, betting on unstable renewable sources can be very costly for German companies and the economy. Electricity prices on the spot market for the following day are reaching twenty-year highs.
In recent years, Germany has been among the European economies planning to dramatically reduce greenhouse gas emissions and transition to renewable sources. This involves closing many fossil fuel power plants, which, unlike renewable sources, can provide energy even when the wind is not blowing and sufficient sunlight is not reaching the photovoltaic panels in Germany.
Along with the decision to shut down nuclear power plants, which came as a response to the accident at the Fukushima nuclear power plant in Japan, it now brings significant problems to the German economy. The country is unable to cover its energy needs from its own sources and thus becomes heavily dependent on imported electricity.
Ceny elektřiny na následující den v Německu rostou na maxima posledních dvaceti let
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A considerable portion of the energy in Germany now comes from sources that the country wants to abandon. The electricity produced is provided to Germans by neighboring countries, including the Czech Republic, which generates a large amount of its energy from coal and nuclear power. A very important “supplier” for Germany is France, which, unlike Germany, has long relied on nuclear power as a stable and emission-free source of electricity.
The current day-ahead electricity price, which is now approaching a twenty-year high, is another issue faced by the German economy. For the local industry, led by the automotive sector, which is experiencing sales declines due to the transition to electromobility and increasing competition from China, it is another major blow. Although spot prices will not have an immediate direct impact on local companies, the unstable energy situation and energy prices can bring significant problems, as demonstrated by the energy crisis associated with the beginning of Russia's invasion of Ukraine.
