Germany's Peter Altmaier, one of conservative Chancellor Angela Merkel's most reliable ministers, revealed on Wed., Feb. 20 that the price of transitioning the country's energy provisions into a greener reality could cost an estimated $1 trillion euros ($1.34 trillion).
The green energy restructuring could also take almost two decades, Altmaier says.
"We have maybe our last big chance to lay the right foundations to make this a success," Altmaier told the Frankfurter Allgemeine Zeitung newspaper. "That means the energy switch must be economically justifiable and must be affordable."
With Germany's September vote on the line and reservations from Social Democrats (SPD) (in collusion with Greens), Altmaier's plans — based on subsidies for renewable power that have driven up consumers' electricity bills — may be doomed before the target date, the end of the 2030s, even arrives.
"Renewables are due to account for 35 percent of German power in 2020 and 80 percent by 2050," says Reuters in reporting the situation.
A component of the restructuring that may take place under Merkel's administration stems from Japan's Fukushima disaster of 2011, the second-largest nuclear disaster since 1986's Chernobyl incident. Merkel has ambitiously taken on an eradication plan for nuclear power plants, with high subsidies being funneled into solar and wind power throughout Germany.
To keep the average electricity bill from swelling to an impractical amount, Altmaier hopes to "cap increases in subsidies for renewable power for two years and suspend feed-in tariffs to new installations," says Reuters.
Bolstered by support from Free Democrats (FDP) — a coalition partner of Merkel's — Altmaier's plans, he says, could ultimately save the country 300 billion euros.
Not surprisingly, German chemicals and steel firms such as the EID Energy Intensive Industry group, have staunchly opposed Altmaier's proposal.
Part of the discontent stems from the fact that the aforementioned subsidies would affect not only consumers but also these conventional energy firms who would have to pay a large portion of the planned annual 700 million euros necessary to see the transition completed.
"Politicians want to turn the cap on the renewable energy surcharge into reality by making its most energy-intensive industry shoulder the burden," said EID spokesman Utz Tillmann. "We need a cost brake that will limit the costs of renewable energy equally for all consumers for the long term."
Altmaier anticipates securing a deal in March with Germany's 16 federal states, whose support is required to get a law through the legislative body, the Bundesrat.
SPD and Greens have rejected the plans but Reuters reports that "a deal may be reached in some areas."
Like what you're reading? Follow @profklickberg.
