Imagine if the government forced supermarkets to buy bread from plain white bread bakeries, ordered them to pay these bakeries a fixed price that’s 5 times higher than normal for 20 years, and forced them to buy up all the white bread these bakeries could produce, whether needed or not.
And imagine if the government also forced the supermarkets to buy bread that was never baked to begin with! All of this of course justified by bogus science claiming plain white bread is healthy and whole grain bread is a killer.
You can imagine the consequences.
Well, that’s exactly what Germany is doing with electricity. It requires power utilities to buy up “green” electricity from every producer at exorbitant rates, and to do so for 20 years. And if the grid gets overloaded on windy days, the wind-farm operator is told to stop producing, but still gets paid by the power utilities.
Unfortunately, Germany’s green politicians here were too dim-witted to foresee the obvious consequences. Now reality has since caught up. The German electricity market is on the verge of collapse. The scale of the EEG Renewable Energy Feed-in Act is of unprecedented stupidity, a folly that will certainly go down in German history textbooks.
The backpedaling away from solar subsidies in Germany is now happening so fast that it’s making people’s heads spin. Call it the reverse energy supply transition – one from fantasy back to reality.
Germany pulls the emergency brake on solar energy
Today a growing number of German officials, who were once huge proponents of renewable energies and the EEG Feed-In Act, are now realizing that solar energy in gray and rainy Germany is a folly after all. Electricity rates in Germany are skyrocketing and the risks of uncontrolled energy supply interruptions are mounting. Officials are now screaming for a drastic scale-back of solar subsidies. Economics Minister Philip Rösler is now calling for an end to the fixed and guaranteed (for 20 years) renewable energy feed-in rates paid to green producers.
Even Germany’s super green Environment Minister Norbert Röttgen has seemingly woken up and now plans to drastically scale back new installations of solar systems in Germany, according to CO2 Handel here. In the new plan, subsidies will be scaled back on a monthly basis and accelerated. Subsidies for solar systems under the new plan would end by 2017.
Energy intensive industries are bolting, or are planning to do so
Power utilities have been finding it increasingly difficult to juggle the constantly and widely varying energy sources of wind and solar power, and are warning that power outages and grid collapses are just a question of time.
The mandatory feed-in of the vastly more expensive solar energy has caused electricity rates to surge and have been driving energy-intensive industries out of Germany. Solar energy was until recently seen as a way of filling in as a power supply in place of the shut down nuclear reactors, and rescuing the climate from coal plants. Now the focus of politics has reversed and shifted to rescuing the economy.
Recent surveys have shown that companies are becoming increasingly wary of conducting operations in Germany due to what they view as a potentially unreliable energy supply. The European Institute for Climate and Energy EIKE) here reports that:
One fifth of every industrial company has moved activities to foreign countries, or plans to do so, because of the uncertain energy and raw material supply. This is the result of a survey conducted by the German Chamber of Industry and Commerce (DIHK), in which 1520 companies participated. DIHK-President Hans Heinrich Driftmann finds this alarming: Here, fears that Germany is losing its appeal for foreign investors in the wake of it’s energy supply transformation.”
No wonder Environment Minister Röttgen plans to take drastic measures in curbing solar energy. Germany’s industrial economy is eroding rapidly. Prof. Dr. Dieter Ameling, a former steel industry leader and spokesman, recently said the (green) energy supply transition in Germany meant the downfall of energy intensive industry in Germany.
Unfortunately greens don’t understand that transferring clean, high-standard German industry to foreign, low-standard countries means more CO2 emissions and pollution, and not less. And they certainly do not understand even the most basic laws of economics. Germany’s Renewable Energy Feed-In Act is proof.
Kook greens in Canada think solar power is for free!
Finally here’s hippie David Suzuki (3 min. mark) saying “It’s free, man, it’s free!”
With idiots like that advising governments, we’re not surprised everything is going bankrupt.