Germany has become the second most attractive country for investment in renewable energy, overtaking China, according to a ranking by consultancy EY. The United States took the top spot, with Germany moving into second place for the first time in ten years. The reason for the change is clear.
Until Russia’s invasion of Ukraine, Germany was the biggest consumer of Russian gas, while also relying on coal and nuclear power. In April 2023, however, there was a change. This year, the country closed its last three nuclear power plants and moved away from the use of fossil fuels, marking an important milestone on the road to energy transition. Of course, it is possible that coal consumption could rise temporarily to cover possible fluctuations in electricity supply.
But Germany’s goal is clear. By 2030, renewables should account for 80 per cent of the country’s energy mix. This compares with 46 per cent at present, but only 41 per cent at the start of last year.
Leading the pack, the United States has maintained its position thanks to the passage of the American Recovery and Reinvestment Act (ARRA), which includes $369 billion for energy security and climate change investments. The US government wants the country to have up to 30 gigawatts of offshore wind power by 2030. While this looks like a one-third reduction from current targets, it is a significant shift.
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