Germany's Merkel Outlines Next Steps In Energy Transformation

Germanys Merkel Outlines Next Steps In Energy Transformation
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Τετ, 23 Μαΐου 2012 - 17:48
German government officials Wednesday sought to dispel doubts about the country's shift toward renewable energy as the transition is running behind schedule and has led to concerns about power shortages.
German government officials Wednesday sought to dispel doubts about the country's shift toward renewable energy as the transition is running behind schedule and has led to concerns about power shortages.

Chancellor Angela Merkel said her government aims better coordinate the policy shift between the various ministries that are involved as well as the 16 federal states.

"We want the success, all of us, everybody in his or her own responsibility," Merkel said after a meeting with the country's state governors.

"We have developed today a very detailed plan under the motto that energy supply has to be safe, it must be environmentally friendly and it must be affordable for the people in
Germany . These three issues must be brought together. There is a lot of work ahead of us."

Policy makers were discussing grid expansion, offshore wind power and cuts in solar subsidies, amongst other things, Merkel said.

The government has so far failed to present a plan for filling the void in its future energy capacity, a year after Merkel decided to rapidly withdraw from nuclear power in the wake of the
Fukushima disaster.

It has also yet to outline how it plans to finance the transformation of a primarily fossil fuel-powered and nuclear-powered generation sector to one that is more reliant on sustainable forms of energy, such as offshore wind and solar power.

But hopes for any swift solution of key issues that have been holding up
Germany 's energy transformation were dealt a blow, with Merkel saying that crucial problem areas won't be solved before the end of the year.

For instance, Economics Minister Philipp Roesler said a plan about power grid expansion and modernization will be presented next week, with Merkel saying a law on this expansion is being planned by the end of this year.

One of the most pressing issues in the implementation of
Germany 's energy policy shift is the urgent need to expand and modernize electricity networks to ensure the power can be shipped to consumers.

The acceleration of the nuclear exit--which included the immediate and permanent retirement of nearly half of
Germany 's 17 reactors--has hit southern states Bavaria and Baden-Wuerttemberg most, given their strong reliance in atomic energy.

The strong focus on offshore wind power generation means that much of the former nuclear power generation will now have to be shipped south over hundreds of kilometers to large urban and industrial centers such as
Munich or Stuttgart .

But power grid capacity is limited, which makes transporting the electricity from north to south challenging. During the past winter, power grid balance had been on the brink of breakdown on several occasions due to the vast amounts of renewables power in the system amid very limited grid capacity, regulators and utilities said.

Merkel also said her government aims to reach a deal with the upper house of parliament about a planned heavy cut in solar subsidies before parliament's summer break that starts in July.

The government's proposed sharp cuts in solar subsidies have been suspended by German states represented in the upper house, or Bundesrat. The planned law, approved by the parliament's lower house, or Bundestag, in late March, foresees subsidy cuts of up to 30% for solar energy to contain costs, which have spiraled out of control in recent years.

Following approval by the Bundesrat, the law was to take effect retroactively to April 1.

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