Can Germany Avoid a Spain-Style Meltdown and Indian-Style Blackouts?
Germany's government is treading a fine line between economic catastrophe and widespread power outages, on the one hand, and barely squeaking by with high unemployment and low growth, on the other hand.
If the quality and reliability of Germany's power supply continues to decline under the controversial Energiewende policy, Germany's industry may have no choice but to re-locate in more energy-friendly territories.
...private consumers and especially small and medium-sized businesses are heavily burdened by rising energy prices. Especially the medium-sized companies suffer doubly: first, from the higher energy costs in production and secondly because customers have less money in their wallets because of the rising electricity prices
It should also be remembered that the absolute level of wholesale prices is not really important for the competitiveness of the industry. The comparison with the electricity prices of other countries is much more important for the decisions regarding relocation or outsourcing.
And this comparison does not look good. Germany has the highest industrial electricity prices in Europe. With increasing costs of the green energy policy, relocating abroad is becoming increasingly attractive for companies, especially for energy-intensive businesses. _DieWelt_via_The GWPF
If Germany loses its energy-intensive industries, it will be the beginning of a long, slow slide into deep economic stagnation for the most powerful economy in Europe. And the underlying cause -- the failure of the nation's power grid to maintain high levels of reliability and quality, even while electricity prices are shooting through the roof -- will only get worse as Germany's economy fails.
The loss of such industries would have potentially disastrous consequences for Germany, however. The strength of Germany’s economy – compared to international standards - is mainly due to unusually intact and tightly knit supply chains. Basic industries are not the dinosaurs of "old economy” - already condemned to extinction. They are rather at the beginning of the value chains; with their quality and price level they set the starting point for all subsequent stages of industrial production.
German machine producers, car manufacturers and electrical industry are world leaders, because their engineers and skilled workers have an exceptional knowledge of the characteristics and abilities of their materials.
This expertise also stems from the geographical proximity and close ties of primary industry and processing companies in the manufacturing sector. This proximity should not be put at risk through negligence, allowing value chains to break because companies are driven abroad by unilateral cost burdens due to the green energy transition. _Translation of DieWelt article via The GWPF