A stark warning has been issued by Germany’s Council of Economic Experts, cautioning against underestimating the nation’s burgeoning electricity demand. Monika Schnitzer, chair of the council, alongside climate economist Gernot Wagner, argue in a recent commentary that current projections, including those from the Federal Ministry for Economic Affairs and Energy, fail to adequately account for the escalating power needs driven by rapidly expanding sectors.
The core of their concern lies in the transformative impact of data centers, the burgeoning electric vehicle market, the increasing adoption of heat pumps and the accelerating integration of artificial intelligence. These industries, each demanding significant power, threaten to outstrip existing forecasts and potentially trigger severe consequences if not addressed proactively.
Schnitzer and Wagner directly challenge the ongoing debate surrounding the potential construction of new gas-fired power plants, deeming it a misdirection of resources. Instead, they advocate for urgent and substantial investment in the foundational infrastructure vital for a climate-neutral energy future. This includes a significant expansion of high-voltage power lines, large-scale battery storage solutions, sophisticated smart distribution networks and electrolysis plants essential for the production of green hydrogen.
The economists underscore a critical disparity: the current pace of infrastructure development is lagging significantly behind the speed of the transition to renewable energy sources. This shortfall poses a tangible risk of overloading the power grid, creating supply bottlenecks and ultimately stifling economic growth – a scenario they actively seek to avert. The call to action is clear: Germany, alongside the broader European Union, must act decisively to ensure electricity remains affordable, supply remains secure and the national economy maintains its competitiveness in an increasingly electrified world. A failure to do so, they contend, risks undermining the very foundations of Germany’s climate ambitions and economic prosperity.