German electricity giant warns of collapsing power grid: 'This was more than a warning shot'
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World
November 23, 2024 14:10
amsterdam - RWE CEO Markus Krebber warns of a collapsing electricity grid in Germany and demands rapid capacity expansion in response to a recent sharp rise in electricity prices.
In the evening of November 6, the price of electricity rose extremely fast and sharply, reaching €800 per megawatt-hour, almost ten times higher than normal, said RWE CEO Markus Krebber. This surge was due to a lack of energy in months with low supply of solar and wind energy, a traditional dunkelflaute in Northern Europe. Krebber warned that these high prices are a reliable indication of the delivery security in Germany, emphasizing the need for capacity expansion to prevent further price increases. He described the situation as more than just a warning shot.
On November 6, Germany's demand for electricity was 66 gigawatts, with domestic production accounting for approximately 53 gigawatts and imports for 13 gigawatts. Almost the entire domestic supply was depleted. According to Krebber, this scenario would have been unmanageable on a day with higher peak loads. He emphasized the urgent need for capacity expansion, stating that delaying capacity additions can have severe consequences.
Germany previously shut down its nuclear power plants and aims to phase out coal plants by 2038 in favor of green energy. However, on dark, windless days, green energy sources are less effective, leading to a mismatch between demand and supply. Krebber highlighted the looming risk of acute shortages during winter months and the dependence on importing gas for energy generation in both Germany and the Netherlands.
The shortage affects neighboring countries as energy networks in Northwestern Europe are interconnected. Scarce supply can drive energy prices higher, especially during peak demand periods when reserves are low. The public warning from RWE's CEO has raised concerns among experts, with some suggesting a potential return to nuclear energy for stable power supply.
Despite criticism, Krebber's call for capacity expansion is seen as a critical response to the challenges of transitioning to green energy and ensuring grid reliability in the face of increasing demand and fluctuating renewable energy availability.