It is often said that the dependency on Russian gas is not due to the hasty exit from nuclear energy and coal, but to the insufficient expansion of renewable energies.
(Photo: dpa)
Five months ago, Russia attacked Ukraine. With the right decision to take sides and impose sweeping sanctions on Russia, it was clear we were in an economic war. Given the structure of the Russian economy, this war can only be an energy war. Embargo on the one hand, delivery stop on the other.
The logic of war is just as clear: it is about weakening the opponent. This can only be achieved by falling world market prices. On the other hand, everything must be done to reduce one’s own vulnerability.
Since nothing works in the economy without energy, it is obvious that the susceptibility for an industrial country with a massively one-sided procurement policy, as in the case of Germany, is considerable. No matter what economic models say, it is a crisis scenario that is better not tried out in practice.
Our government is on track to lose the energy war against Russia. How else should one understand Federal Minister of Economics Robert Habeck (Greens), who swears us in for a difficult winter and declining prosperity, instead of doing everything to prevent exactly this scenario?
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In March he rejected the procurement of new fuel rods for the nuclear power plants – after all, a second stress test is now to be carried out. Within a few days, after an “examination”, he declared an extension of the AKW runtime to be impossible. He has postponed the reduction in gas consumption until the fall. An auction model is only to give companies an incentive not to use gas until September.
Gas shock would catch Germany unprepared
He also does not want to let the price signals work. More than 70 percent of private households pay far less than the market price – so they are not aware of the shortage of gas from the price. And then in May 2022 more gas was used to produce electricity than ever before in the same period last year.
Daniel Stelter is the founder of the discussion forum beyond the obvious, which specializes in strategy and macroeconomics, as well as a management consultant and author. Every Sunday his podcast goes online at www.think-bto.com.
(Photo: Robert Recker/ Berlin)
Instead of acting now, the government prefers to present long-term solutions and resort to finger-pointing. It is often said that the dependency on Russian gas is not due to the hasty exit from nuclear energy and coal, but to the insufficient expansion of renewable energies.
What is ignored is that a significantly higher proportion of renewables require conventional power plants as a reserve because there is not enough storage capacity. The easiest way to achieve this is with gas-fired power plants. That is why the federal government planned to multiply the number of gas-fired power plants as bridge technology in February, without knowing how long this bridge would have to support.
>> Read here: Why our energy policy does more good than harm to Putin
The deception of the citizens may work politically, but the incumbent government has failed in terms of prosperity in this country. If the gas shock comes, we will be caught unprepared – and will probably cause lasting damage to this country’s industrial base.
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