U.S. should consider lessons learned from Germany's energy challenges.
Germany has long been recognized as Europe’s economic powerhouse and a world leader in automotive production, machinery manufacturing and other technological exports.
But things are changing quickly. In 2023, Germany was considered among the world’s worst-performing major developed economies, with both the International Monetary Fund and European Union forecasting the potential for a recession.
Germany’s energy policy is considered a major culprit. In recent years, the country has made a rapid transition away from nuclear and coal power plants in favor of the expansion of renewable resources and the supplemental import of natural gas from Russia. The overreliance on these resources has led to increasing energy costs and decreasing reliability of electricity.
German citizens have their own term – dunkelflaute – for the challenges that can arise when renewable energy is not able to meet the 24-hour demand for electricity. The word translates to “dark doldrums,” which is a period of time when little or no energy can be produced by renewables because it is not sunny or windy. This lack of production increases the likelihood of rolling blackout conditions.
In April 2023, Germany closed its final three nuclear plants, which provided reliable, carbon-free electricity to the country’s grid. At the same time, the ongoing conflict between Russia and Ukraine has led to a significant drop in Russian natural gas imports to support the intermittency of renewable energy production. With growing uncertainty about the price and availability of electricity this winter, German officials decided in October 2023 to reactivate previously mothballed coal power plants and extend their lifespans.
“Until it is clear that energy is available and affordable, we should end dreams of phasing out electricity from coal in 2030,” said German Finance Minister Christian Lindner in a November 2023 interview with the German newspaper Koelner Stadt-Anzeiger.
“Now is not the time to shut down power plants,” he added.
What does it mean for the U.S.?
As the United States continues to transition its power supply to more renewable resources, it should take lessons from Germany’s approach. Making substantial changes to something as important as the nation’s electric grid should be approached with caution and common sense. Ensuring the reliability and affordability of electricity is not only essential to the American economy, but it impacts safety, national security and the well-being of the nation’s citizens.
Decarbonization of the electric grid is an ambitious goal and will require decades of unprecedented work and technological breakthroughs. Mistakes made during the energy transition are extraordinarily difficult to reverse. The United States should create policy that prioritizes reliability, affordability and resiliency as progress is made toward environmental targets.