Germany needs green energy master plan–study

Feb 26th, 2012 | By | Category: Articles, Facts & Figures, Featured Posts

Shif in power systems to cost 335 billion euros

Germany needs a master plan that brings together central and local government policy and provides certainty for investors and project firms if it is to find the $420 billion needed to fund a radical shift towards green power, a study said on Monday.  The study by the HypoVereinsbank (HVB), a unit of Italy’s UniCredit, being published on Monday says that Germany needs a master plan that brings together central and local government policy and which provides certainty for investors and project firms if Germany wants to fund $420 billion which are needed to finance a radical shift towards green power. It estimates the cost for what Germans call the “energy U-turn” – its move to switch off nuclear plants, increase wind and solar power generation and improve power grids – to 335 billion euros ($420 billion). Europe’s biggest economy needs substantial investments to build up a renewable capacity and connect it with the nine countries on its borders, it said.

“In core areas of the energy U-turn, project financing is currently only possible to a limited extent, because revenue and expenditure cannot be sufficiently gauged“, HVB board member Lutz Diederichs said in a statement. By 2020, 35 percent of Germany’s electricity is meant to come from renewable energy resources, compared with 20 percent now. The HVB study, done jointly with the HWWI economic research institute in Hamburg, said a master plan was needed to bring together central government and state strategies to ensure the integration of new power sources and to clarify the jobs to be undertaken by private versus public partners. “A successful implementation also hinges on acceptance by the population. So far, there are big discrepancies between the public perception and the realities of the energy shift,” Michael Braeuninger, lead author at the HWWI, said. The authors were also concerned about the need for speed in creating storage for power and in building up transmission networks in time to prevent Germany from having to import more power.

Scource and more information: FRANKFURT, June 25 (Reuters)

http://www.reuters.com/article/2012/06/25/germany-energy-finance-idUSL6E8HP17620120625

 

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