How to make the German energy transition in the electricity sector affordable

There is an urgent need to correct the energy transition in the electricity market. GES presents a new paper on this topic. McKinsey has proposed limiting the expansion of wind and solar energy in Germany. This would also eliminate costs for the expansion of power lines. This could already save 150 billion euros in investments by 2035. GES is going further and suggesting that wind and solar power in Germany should not be expanded beyond 50 per cent of the overall system, as anything else is uneconomical. In addition to the volatile sources of wind and solar power, a stable electricity system needs a second pillar with reliable, controllable energy. Gas-fired power plants that capture CO2 would also further reduce electricity system costs. The GES proposals could avoid a further 150 to 200 billion euros in investment costs by 2035. The competitiveness of Germany as a business location would be significantly strengthened.

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