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InvisibleBlack -> Germany going green, despite the costs (11/21/2011 10:53:55 PM)
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Interesting article I came across the other day on Germany's plans for producing power going forward. Faced with plans to close all of its nuclear reactors by 2020, Germany is now moving towards other energy sources ... but despite increasing investment in renewable energy, it's also building coal and gas-fired power plants. quote:
Despite Germany's Kreditanstalt fur Wiederaufbau (German Development Bank) being set to underwrite renewable energy and energy efficiency investments in Germany worth $137.3 billion over the next five years, Merkel's government has now announced that in addition to going green, it will also build a dozen coal-fired power plants as part of the country's future energy mix. In order to assure the energy transition, the government also plans to subsidize new natural gas power plants as well. Germany has been on the forefront of the "green revolution" in many ways, and no one has ever accused the Germans of being technologically backwards. I find the fact that they're building coal-fired power plants interesting. quote:
The government's newly pragmatic approach contrasts with the hopes of many environmentalists, who believe that Germany now has a historic opportunity to embrace renewable power rather than pursuing the retrograde step of commissioning new coal burning power plants. The issue seems to be that with the Germany economy stalling, the costs of propsoed renewable energy solutions are too expensive, and the time-frame to develop more efficient solutions is too long to meet their deadlines. quote:
But the renewable power sources will be costly. On October 19 the German Association of Industrial Energy and Power Users complained that electricity price had increased even though its quality has decreased and noted that next year its members will see their electrical power invoices increase by 9%. As for the economics of the shift, electricity from conventional coal fired plants costs roughly $83 per megawatt-hour, the price increases roughly 50% to $124 per megawatt-hour for wind energy, $207 per megawatt-hour for offshore wind power, and $268 per megawatt-hour for solar, the last more than three times the cost of coal-fired electricity. At a very basic level, if the growth of production (say GDP) is below the level of population growth, the only possible result is a widespead increase in poverty and, if the difference becomes pronounced, human misery. Is the right answer at this time to pursue expensive and/or undeveloped energy solutions, despite the economic problems facing the global economy, or to provide cheap "efficient" energy as quickly as possible to keep production and consumption costs down and resume the pursuit of renewable energies once economic conditions have recovered? Is Germany doing the right thing?
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