Energy crisis to cost Germany $1 trillion – Bloomberg

Lazy eyes listen


According to Bloomberg’s primary research service, Germany’s government will need to allocate more than $1 trillion by 2030 to deal with the risks and challenges posed by the energy crisis.

The massive costs are expected to include investments in modernizing the country’s power grids as well as a planned phase-out of the country’s nuclear and coal plants. Electric vehicles and heating systems are expected to increase demand in Berlin. Furthermore, German authorities are required to meet climate commitments.

According to data provided by the country’s network regulator and think tank Agora Energiewende, a 30% increase in power demand from current consumption will bring the total new capacity projected to be installed by 2030 to around 250 gigatonnes.

According to the news agency’s analysts, the planned transition will also necessitate the installation of solar panels covering the equivalent of 43 soccer fields and 1,600 heat pumps every day. Furthermore, the country’s ambitious plan would necessitate the construction of 27 new onshore and four offshore wind farms per week.

Earlier this month, the Brussels-based think tank Bruegel reported that EU nations had spent nearly €800 billion (nearly $846 billion) on assistance measures as the region grappled with rising energy costs.

According to the analysis, €681 billion was set aside for subsidies to households and businesses in order to help them cope with rising electricity costs. Germany is said to have topped Bruegel’s spending chart, having set aside nearly €270 billion, while the next three countries have set aside less.