Expensive electricity and bankruptcies: Does Germany need to go back to nuclear power?

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Once a world marketplace leader, today, Germany is considered nan "sick man of Europe", arsenic nan state remains mired successful recession for nan 3rd twelvemonth successful a row.

Economic experts foretell zero maturation for this year, arsenic nan figures proceed to show a melodramatic decline. Last year, almost 200,000 companies unopen their doors, according to a study by Creditreform, nan highest fig since 2011.

The numbers will proceed to plummet successful 2025. A caller precocious successful insolvencies was reported successful April. According to nan Leibniz Institute, 1,626 institution insolvencies were registered — 21% much than successful April 2024 — exceeding moreover nan figures from nan 2008 financial crisis.

The precocious energy prices successful peculiar are causing problems for industry. Some alloy giants now person to temporarily unopen down their accumulation connected a azygous time to protect their institution from financial damage.

Meanwhile, different companies are relocating their accumulation to Eastern Europe — aliases moreover to China. Entire industries are nether threat. Foremost among them is nan automotive industry: VW, Mercedes and BMW are cutting thousands of jobs.

"Made successful Germany" has simply go excessively expensive.

"We now only person 24 months to prevention nan energy-intensive industries," well-known German economist Daniel Stelter warned successful an question and reply pinch Euronews. The losses suffered by business companies to day tin nary longer beryllium reversed, he said.

'Katherina Reiche's argumentation is simply a continuation of Habeck's'

Economics Minister Katherina Reiche (CDU) has correctly recognised Germany's power costs problem. She is successful favour of power information and little energy prices. This is why she wants to subsidise business electricity, for example. However, nan EU is threatening not to spell on pinch this.

Reiche besides wants caller gas-fired powerfulness plants arsenic a solution to nan problem — but nan value of state is besides higher than ever. Does nan curate person nan correct look to prevention nan German economy?

Stelter explains that Minister Reiche is taking nan correct step.

"When nan upwind isn't blowing and nan sun isn't shining, we request a unafraid supply. Now that we person switched disconnected atomic powerfulness plants and we besides want to move disconnected coal, nan only point near is gas-fired powerfulness plants," he said. Only pinch renewable energies, "it conscionable won't work."

However, Reiche's measures person not yet been capable to revive nan system truthful that Germany tin stay an business nation.

"Anyone who believes that renewable power successful operation pinch gas-fired powerfulness plants will lead to inexpensive energy is surviving successful a dream world," Stelter told Euronews.

"Many group only ever look astatine nan costs of star cells and upwind turbines. Only erstwhile nan upwind is blowing and nan sun is sparkling is it favourable. In reality, we person to see nan strategy costs specified arsenic retention and batteries - past renewable energies are nan astir expensive," he explained.

"Reiche's policy, arsenic it stands today, is really nan continuation of (former minister) Robert Habeck's policy," Stelter added, and is not suitable for "supplying an industrialised state pinch power sustainably and cheaply."

Should nan atomic phase-out beryllium cancelled?

Instead of gas-fired powerfulness plants, atomic powerfulness plants would beryllium a amended solution, says Stelter.

"If you inquire maine personally for my opinion, I would of people not person phased retired atomic powerfulness successful nan aforesaid way. And I would now do everything successful my powerfulness to reverse nan atomic phase-out by reactivating nan aged atomic powerfulness plants."

Energy master Björn Peters takes an moreover much captious view. He has conscionable launched his caller book connected nan marketplace titled "An End to nan Energy Transition." In it, he argues that nan system should situation to beryllium much ecologically realistic.

"You can't trim nan value of energy pinch gas-fired powerfulness plants alone. They are very costly to operate. Gas is expensive. Then location are nan CO2 costs connected top. That would mean that successful nan agelong word you would person shaper prices of betwixt 15 and 20 cents per kilowatt hour," said Peters, emphasising this is excessively expensive.

"That would make america uncompetitive."

Instead, nan proviso must beryllium expanded quickly.

"This consists of nan decommissioning of atomic powerfulness plants, home accumulation of earthy state and CCS, which is CO2 seizure from coal-fired powerfulness plants," he explained.

"We person capable ember for 200 years. It would beryllium successful nan interests of nationalist information to proceed utilizing coal, but pinch nan due filters."

Nuclear powerfulness plants specified arsenic Brokdorf and Emsland could beryllium reactivated by 2026. Six different atomic powerfulness plants could besides beryllium recalled, and nan process could proceed into nan 2030s.

The consequences of nan erstwhile "bad power argumentation should not beryllium subsidised down", warns Peters. "Of people that won't work."

"Politicians are focusing connected solving nan business situation done subsidies - successful different words, little taxes and authorities subsidies instead. That doesn't make sense. The rule is that nan greater nan supply, nan better," Stelters said.

Nevertheless, he is optimistic astir his expectations of nan caller economics minister.

Reiche wants to "seriously return stock" of nan economy, he said.

"We person spoken to individual authorities representatives successful nan past fewer days. And they astatine slightest look to beryllium reflecting connected nan atomic phase-out."