Analysis of the 2023 electricity balance: How meaningful are Robert Habeck's success reports?

Analysis of the 2023 electricity balance: How meaningful are Robert Habeck's success reports?

According to a report by www.tichyseinblick.de, German Economics Minister Robert Habeck made positive comments about the electricity balance at the beginning of 2023. He proudly announced that the 50 percent mark for renewable energies had been broken for the first time and that coal-fired power generation had fallen to its lowest level since the 1950s. However, various facts show that this jubilation is not exclusively due to the expansion of renewable energies.

The reduction in German CO2 emissions by 73 million tons was due to 50 percent of the economic decline and only 15 percent to the expansion of solar and wind power plants. The politically caused economic recession in Germany led to a 5.4 percent decline in electricity consumption compared to the previous year. This had an impact on the energy-intensive industry, whose companies in many cases cut back production or relocated it abroad. In addition, electricity imports to Germany rose by 63 percent because electricity from abroad was cheaper than domestic electricity on many days.

The facts suggest that the minister's positive record should be viewed with caution. Despite the decline in demand, electricity from Germany is expensive and CO2-heavy. At the same time, Europe's largest industrial country now depends on its neighbors for its electricity supply. There are new challenges for the future, such as the need to build gas power plants with a capacity of 60 gigawatts by 2030, for which there are currently no financing or construction plans.

This suggests that the minister's positive statements about the 2023 electricity balance require a more nuanced view to understand the real impact on the market and the financial sector.