Germany faces $1 trillion challenge to plug massive power gap

Germany has set aside more than 260 billion euros ($275 billion) to deal with the immediate risks of an energy crisis triggered by Russia’s war in Ukraine, but the ultimate fix will be much costlier — if the country can pull it off at all.

The pending price tag for future-proofing the country’s energy system is projected to amount to over $1 trillion by 2030, according to Bloomberg.

The costs include investments in upgrading power grids and above all new generation to manage the phase out of nuclear and coal plants, handle increased demand from electric cars and heating systems, and meet climate commitments.

The transition will require the installation of solar panels covering the equivalent of 43 soccer fields and 1,600 heat pumps every day. It also needs 27 new onshore and four offshore wind plants to be built per week, according to a wish list presented by Chancellor Olaf Scholz during a recent visit to Volkswagen AG’s headquarters in Wolfsburg.

“This is a bold undertaking — possibly the boldest project since the reconstruction of Germany,” Vice Chancellor Robert Habeck, who oversees climate and energy policy, said earlier this month.

Around 250 gigawatts of new capacity will have to be installed by 2030 — when power demand is expected to be about a third higher than it is now — according to estimates from Germany’s network regulator and think tank Agora Energiewende.