Grid Your Teeth

And just keep on paying. Or how about grid and bare it?

Germany’s power grid hasn’t kept up with the explosion of new alternative energy sources — particularly the offshore windparks being built in the Baltic Sea and the North Sea off the country’s north coast. Many of those projects are at a standstill, with no way to deliver the power they generate to the mainland.

On Wednesday Merkel’s cabinet hopes to agree on a stop-gap measure to compensate power companies for losses accrued as a result of the delays, but again it will be German consumers who will ultimately suffer.

“The primary reason for the problem lies in the ‘third path’ policymakers have chosen to lead us into the renewable future. There is neither a centrally planned economy to steer the energy system nor are the rules of the market economy allowed to regulate the system according to the laws of supply and demand. Instead, a model of ‘decentralized planned economy’ is being pursued. Municipalities, states, the federal government and the European Union are all creating plans independent of each other and of those affected. There is no coordination…. The result is a fair amount of chaos with policymakers struggling to keep up. Everyone is aware that the situation cannot continue if the renewable energy revolution is to be a success. As such, the question is whether we want to move from where we are today in the direction of a centrally planned economic model or rather in the direction of market economy principles.”

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