German online finanztreff.de here reports on the opinion recently expressed by Prof. Hans-Werner Sinn, Director of the renowned Munich-based ifo-Institute for Economic Research, regarding Germany’s attempted move into renewable energies, primarily solar and wind power.
Currently about 25% of Germany’s energy supply is “green”.
At a conference of experts in Berlin Sinn is quoted by Dow Jones as saying that the installation of “renewable energies in Germany has already reached its limits” because there is just nowhere near enough storage capacity available to balance out the sharp and volatile supply spikes of wind and solar power.
Sinn also ridiculed the idea of using electric cars as a means to store the green energy, calling the notion a “PR gag”. He added that 159 million BMW i3 vehicle would have to be put on the streets, i.e. thus nearly tripling the number of cars currently on the streets. A preposterous solution.
On using green energy to produce gas, Sinn calls it a horribly expensive alternative that would cost about 24 cents per kilowatt-hour; Russian natural gas by comparison is only 3 cents per kilowatt-hour, he says.
“It would get expensive very rapidly,” Sinn warned.
Currently Germany’s Ministry of Environment is proposing the investment of 1 trillion euros for a new energy supply system. Sinn calls that idea “a monstrous gamble with an uncertain outcome“, and one that harbors “a real risk” of Germany “gambling away its prosperity“.
So how will German policymakers react to Professor Sinn’s assessment? Well, if they don’t heed his warnings, then there’s really no one left out there who may still be able to talk sense and reason back into the policymakers’ heads.
Should the policymakers ignore the warnings of the renowned Ifo Institute, then the only thing left is to learn it the hard, painful way. Knowing today’s German intellectual obstinacy of the elite class, the odds of that are better than even.