Tuesday, 4 December 2012

Germany on its way to become the country with the highest energy prices

Germany is well on its way to become the country with the highest energy prices in Europe. 
The senseless energy transition policy, favoring subsidized, unreliable and ineffective wind and solar power, is making Germany dependent on expensive Russian gas, and now also overpriced Norwegian hydro power:

Germany and Norway have signed a contract for a high-voltage undersea cable aimed at exchanging surplus renewable energy. The project is essential for Germany's plan to phase out nuclear power by 2022.
Construction of the North Sea underwater cable would cost between 1.5 billion and 2 billion euros ($2-2.6 billion), and is expected to be finished by 2018, Germany's state-owned KfW development bank announced Tuesday.

"This project is a major step toward the integration of German wind power in the country's energy grid, and a cornerstone of Germany's shift toward renewable energy generation," TenneT Chief Executive Martin Fuchs said.

The North Sea cable is scheduled to boast a capacity of 1,400 megawatts - the equivalent of a larger plant. It is intended to transport Norwegian hydropower to Germany in times of low wind and solar supply. Furthermore, the country's excess power from renewable sources is meant to be transported to Norway to be stored there in dams for later use back in Germany.
Denmark is already doing what Germany intends to do:
Windy Denmark is able to shift nighttime energy resources for daytime use, while Norway -- which gets almost all its electricity from conventional hydropower -- has reservoirs behind its dams that can easily store that excess power. The arrangement helps Norway mitigate some of the risk from drought and other challenges to its hydro-heavy grid, Miller said.
For Norwegians, the system is a great money-maker as well. They pay their neighbor almost nothing for the nighttime wind energy they take on since demand is so low at that time, but charge Denmark a premium for it at peak pricing hours.
"Norway is making a killing," Miller said. "Danish people pay the highest power prices in Europe."
Energy prices have already risen steeply in Germany creating huge problems for consumers and companies. But that is only the beginning. Wait until the Norwegian energy barons begin to "make a killing"!

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