Pandemic adds trouble for Germany's energy transition – McKinsey
Clean Energy Wire
The coronavirus pandemic has created new problems for Germany’s energy transition, according to management consultancy McKinsey. The pandemic had particularly slowed the rollout of wind power, the group said in a press release on its latest publication of the "Energiewende-Index," which tracks the progress of Germany's transition. It added that the number of jobs in renewable energies was declining. Thomas Vahlenkamp, co-author of the index, warned that up to 15 percent of all renewable energy projects in Europe could be delayed or cancelled because of the pandemic. Energy markets were also negatively affected, he added, because lower prices made the use of conventional fuels more attractive while lower power prices decreased the yield of wind and solar parks.
McKinsey said that eight of the 15 energy transition targets chosen by the consultancy are still realistically achievable, but three of them are on the brink of failure - the consultancy classifies the the share of renewable power, total household energy costs, available capacity for import, security of power supply and industry power prices as "realistic", and says that targets for the renewable share of total energy use, renewable heating, and a secure back-up supply are still realistic but could fail in the medium term. CO2 emissions and jobs in renewable energies are classified as "in need of adjustment". McKinsey says five other indicators remain unrealistic, namely reducing primary energy consumption, the transition in the transport sector, costs for grid management, grid extensions, and household power prices.