FRANKFURT, March 9 (Xinhua) — The progression of Germany’s green energy transition is facing significant challenges, as a recent review report on its development over the past three years revealed that the government is falling far short of its objectives.
The report, released by the German Federal Court of Auditors (Bundesrechnungshof) on Thursday, highlighted concerns such as the compromise of the power supply security, high electricity costs, and the government’s inability to fully evaluate the impact of the energy transition on the landscape, nature, and environment.
Germany had set a target to supply approximately 80 percent of its electricity consumption through wind, water, and solar energy by 2030, a goal that was endorsed by the German parliament in 2022.
However, the report pointed out that in the past three years, the expansion of renewable energies and electricity grids has been progressing at a slow pace, with insufficient additional generation capacity to meet the demand.
According to the report, Germany urgently needs to extend its grid by 6,000 km, a task that is seven years behind schedule. The targets for onshore wind energy expansion are also unlikely to be met soon, as only half of the necessary projects were awarded in 2023.
The president of the Federal Court of Auditors, Kay Scheller, emphasized the lack of monitoring mechanisms to evaluate the consequences of the energy transition on land, biodiversity, and other environmental aspects.
German Economy Minister Robert Habeck disputed the report’s conclusions, stating that it does not accurately depict reality. Habeck contended that while the transition may not be complete, progress is being made, and the expansion is gaining momentum.
The report criticized the federal government for failing to reduce subsidies for fossil fuel products, which are seen as hindering the energy transition strategy in Germany and the European Union (EU). These subsidies are considered essential to prevent industrial exodus in light of Germany’s struggling economy.
Habeck, a vocal proponent of energy subsidies, has expressed concern about the high energy prices in Germany that might prompt companies to relocate production to more cost-effective locations. To mitigate this, the government has approved a subsidy plan amounting to 5.5 billion euros in grid fees for 2024 to stabilize electricity prices.
In 2023, Germany recorded a 0.3 percent economic contraction, contrasting with the 0.5 percent growth in the euro area. Habeck revised the economic growth forecast for 2024 down to 0.2 percent, significantly lower than the previous projection of 1.3 percent.
