News
05 Dec 2022, 13:55
Julian Wettengel

Germany needs fossil gas for more than a decade alongside renewables expansion – McKinsey

Gas

Clean Energy Wire

Fossil gas will be a crucial part of Germany’s power and energy supply for at least another ten years, because the expansion of renewables and the electricity grid are lagging behind, said consultancy McKinsey in a press release. A report on the future of the country’s power supply showed that Germany will need “a massively accelerated renewables expansion” as well as more gas power units which could later be converted to use biogas or green hydrogen. Companies should seek long-term gas supply contracts to ensure lower prices. Despite the “negative effects on sustainability”, 10 gigawatt (GW) of coal power capacity slated for shutdown must be kept online until emission-free, hydrogen-ready gas units are available, writes McKinsey. The consultancy’s report examined various scenarios which would bring electricity prices to a level comparable with other industrialised countries by 2025, while ensuring a secure power supply. 

The new German government was determined to dedicate considerable efforts to climate and energy reforms even before Russia started its war in Ukraine and energy concerns took centre stage. The war has prompted the government to put extra focus on supply security, also through fossil fuels. Natural gas continues to play an important role in the government’s plans to move the country to climate neutrality by 2045. 

All texts created by the Clean Energy Wire are available under a “Creative Commons Attribution 4.0 International Licence (CC BY 4.0)” . They can be copied, shared and made publicly accessible by users so long as they give appropriate credit, provide a link to the license, and indicate if changes were made.
« previous news next news »

Ask CLEW

Sören Amelang

Researching a story? Drop CLEW a line or give us a call for background material and contacts.

info@cleanenergywire.org

+49 30 62858 497

Journalism for the energy transition

Get our Newsletter
Join our Network
Find an interviewee