Energy Revolution Interruptus: Germany’s Energy Revolution Stalls Without Decisiveness and Incentives
Germany’s energy revolution has hardly begun, but it’s already running out of steam. There is a lack of political decisiveness and companies are complaining of a dearth of incentives to invest billions in necessary infrastructure. Progress or no progress, taxpayers continue footing the bill.
German Chancellor Angela Merkel, the leader of the center-right Christian Democratic Union (CDU), will see federal diversity on display this Wednesday when she hosts Germany’s governors for an energy summit in Berlin. She can expect to see 16 governors and hear 16 different opinions — at the very least.
Each delegation has a different notion of what Germany’s energy revolution should look like. The delegation from the northwestern state of Lower Saxony wants to promote offshore wind farms, while the representatives of the southwestern state of Baden-Württemberg favor projects that make more sense farther inland. The Bavarians are calling for new gas-fired power plants in the south, while politicians from the northeastern state of Brandenburg are championing the unfettered expansion of the solar industry, which is ailing in the east.
The cacophony reflects the current state of affairs. Things are all over the place in the energy turnaround at the moment, and nothing seems to be working. The key project of the coalition government of Merkel’s CDU, its Bavarian sister party, the Christian Social Union (CSU), and the pro-business Free Democratic Party (FDP) is stalling before it has truly begun.