Saturday, January 20, 2018

Germany

As natural gas prices have been coming down (due to fracking) over the past 12 years as the conversion of coal fired power plants to natural gas has accelerated. The result is that CO2 emissions are now at the same level they were in 1995 even though the population has increased from 265 million to 325 million. Other factors, like increased fuel efficiency in cars and many trucks and buses using natural gas as fuel have helped. Germany is a different story. They have refused to allow fracking and they have been closing down nuclear power plants. Their emphasis has been on solar and wind. The result is the cost in the US is about 12 cents per kilowatt hour and in Germany the cost is 26 cents. This means that my average electric bill would be $300 per month. In addition German companies are more likely to relocate to areas where the cost of energy is lower. In spite of these efforts CO2 emissions in Germany are on the rise and they will not meet their commitment to the Paris Accords so they are moving to change their remaining coal plants over to natural gas. One area that the Germans excel is in conservation. Their homes are smaller and their actual cost is the same as a US home. They have responded to the higher cost by using less something the people in the US might consider.

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