Well ain’t that a silly title. A more complete and correct sentence would be; the future of the electricity market in Germany belongs to subsidized Wind and Solar energy.
Which, for anyone who knows how cloudy Germany is, immediately brings to mind
Whom the gods want to destroy they first make mad.
Berlin paper Tagesspiegel reports about crisis of power plant operators RWE, EON, Vattenfall.
For the first time ever (or so), German press mentions the cost of 24 bn EUR annually in subsidies payed to renewable energy operators Wind, Solar, Biogas, Biofuel (though, their number is one year too old; it already ballooned to 28 bn in 2015).
I like their conclusion: “Oversupply of subsidized electricity pushes the unsubsidized electricity out of the market.” Somewhere else they mention new RWE’s proclamative slogan “RWE starts future business”; meaning the orientation of RWE towards renewables.
Taken together we can say: The future is subsidized energy; the past was unsubsidized energy. And, as we all know: Unsubsidized energy was half as expensive for the customer!
The conclusion is: The SPD-CDU government introduces central planning, eradicates the market, and destroys wealth. A textbook example for the effects of central planning and the incapability of the state.
And therefore, noteworthy.
Will it kill us? Nope. Will it make us poor? Well, a little poorer. Spending about 1.5% of GDP on an uneconomic enterprise does that. Will the state roll out similar market destruction into other areas? You bet.
How do EON shareholders like it?
(long term chart of EON, at comdirect, online branch of Commerzbank)
(This rant first published as a comment at notrickszone )