Posted 2/29/2024, 1:02:12 PM
Germany's Energy Transition Woes Offer Cautionary Tale for U.S. Manufacturers
- Germany, once a manufacturing powerhouse, is now struggling as companies like BASF cut costs and jobs due to high energy prices
- A major driver is Germany's net-zero emissions goal that led it to shutter coal and nuclear plants before sufficient renewable energy was online
- As a result, Germany now has some of the world's highest electricity prices, making industries uncompetitive
- The crisis serves as a warning for the U.S., which risks reliability by closing dispatchable plants in favor of weather-dependent renewables
- U.S. manufacturers, who rely on affordable and reliable electricity, have been largely silent even as policies threaten that