Germany’s Spiegel magazine appears to have discovered harsh realities. Following on an earlier interview of Fritz Vahrenholt and a report on the failure of emissions trading that exposes the EU using certificates to print money for itself, Spiegel reported last week on Merkel’s switch to renewables endangering German industry.
Last spring, Chancellor Angela Merkel set Germany on course to eliminate nuclear power in favor of renewable energy sources. Now, though, several industries are suffering as electricity prices rapidly rise. Many companies are having to close factories or move abroad.
Lack of reliable, affordable electricity and other energy sources is driving manufacturing out of the country. Aluminium and steel production are noted as shutting down, now unable to remain commercially viable under the existing energy policies of Germany and Europe. Other energy-intense manufacturing is expected to follow suit.
It is the heavily subsidised push to renewables, partly financed by penalties on the producers (and therefore users) of reliable energy that make energy too expensive and unreliable for a competitive manufacturing base. That applies as much in Australia as it does in Germany.