Exiting and Re-entering Nuclear and Fossil-Fuel Energy in Germany

Abstract

The German economy currently faces increasing energy expenses, which have partly resulted from its ongoing policy of energy transition. This paper seeks to identify the latest potential anomalies and the favorable or unfavorable choices in Germany’s green energy transition process, whose origins may be traced back to the 1970s. It points out that the country’s still existing dependency on fuel imports from Russia as well as the complete phasing out of nuclear power plants have made a negative impact on the green transition, and may harm economic activities in Germany. Following the shutdown of nuclear power plants, the growing use of fossil fuel fired power plants led to a rapid increase in greenhouse gas emissions. Meanwhile, the power consumption has been shrinking over the past few years. The war in Ukraine led to a sudden price shock in fossil fuels. Consequently, German administration was forced to decide about ramping up electricity production from solid fossils in order to maintain grid stability. This article seeks for answers for the questions whether the German government acted too hastily when it decided to shut down the nuclear power plants; whether this step was beneficial, i.e., power generation from renewable sources could reduce or eliminate that from fossil fuels; and whether nuclear energy has a role in the transition process. It further reveals that different calculation methods lead to failure of transparency in expenses of power generation and different sources interpret the same or similar data also in different ways. This case study suggests that under such conditions, the authorities should have either postponed the closure of nuclear power plants and simultaneously incentivize researchers to develop safer next-generation nuclear plants, or they could have accelerated the generation of alternative renewable energy.