“Job illusion energy transition“

Germany is paying a high price for creating jobs in the renewables sector and it is uncertain whether these jobs are sustainable in the long run, Manuel Frondel writes in a guest article for Frankfurter Allgemeine Zeitung. The econometrist from economic research institute RWI argues the 25 billion euros of renewable surcharges paid by German consumers as part of their power bill each year make “the employment argument for renewables as unsound as it has been for the [subsidised] hard-coal industry.” Rather than genuinely creating jobs, the renewables industry competed with other industries for skilled workers and investments, which are “becoming economically less attractive” due to renewables support. Frondel says employment in the solar industry has not developed as projected due to competition from China, while only about one-fifth of the 142,000 jobs in the wind power industry is in the operation and maintenance segment and therefore not susceptible to short-term investment fluctuations.

Read the article in German here (behind paywall).

For background, see the CLEW article Last major German solar cell maker surrenders to Chinese competition and the CLEW factsheet German onshore wind power – output, business and perspectives.