Successful energy transition requires annual investments of up to two percent of GDP
Germany will have to invest between 30 billion and 60 billion euros per year over the next three decades if it is to achieve a near-complete decarbonisation of its energy system, technical academies Leopoldina, Acatech and Union say in a joint statement. Costs might be even higher if conditions turn out to be less favourable but could also be lowered by “setting up a smart framework”, the press release says. A uniform CO2 price for all sources of emissions was central to keeping costs at a minimum, says Karen Pittel of the ifo Center for Economic Studies and member of the tech academy alliance ESYS. Germany also had to make greater efforts to push the electrification of the transport and heating sector and ramp up power storage capacities with batteries, hydropower, and power-to-gas technology, the press release says. In addition, the capacity of renewable wind power and solar power plants had to grow by five to seven times by 2050. The tech academies say that Germany will have to rely on “reserve capacities” in order to “safeguard supply in every weather condition and season”, meaning low-emissions gas plants or fuel cells will have to play an important role in the energy system of the future.
Read the press release in German here.
See the CLEW factsheet Germany ponders how to finance renewables expansion in the future for more information.