For decades, the German people have been among the world’s most environmentally conscious. The strongest sign of this has been the commitment of successive governments to Energiewende – or “energy change” – designed to make the economy predominantly dependent on renewable sources such as wind and solar power. Renewables today account for 23 per cent of electricity production, a figure set to rise to 65 per cent by 2035.
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This emphasis places burdens on households and businesses. The cost of the subsidies offered by the German government to green energy producers is passed on to consumers. Domestic energy bills are 48 per cent higher in Germany than the European average. Germany’s Mittelstand companies are even worse off. Their costs are twice the level facing their US rivals, many of whom benefit from cheap shale gas.
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