Thesis: The price of sustainability in energy policy is proper regulation and wide participation
Proposal for the Global Economic Symposium in Kuala Lumpur by Jost de Jager
For years to come, the German energy market ist going to be an economic laboratory of extra large dimensions. By 2022 nuclear power plants, which still account for 15 percent of the power supply, will have to be substituted by renewable energies. On top of that, by 2025 the renewables will have to account for 40 percent of the over-all electricity production. This decision of the government, the so-called “Energiewende”, was triggered by the nuclear catastrophe of Fukushima which brought home to everyone the vast ecological consequences in the - admittedly rare - case of a technical failure of nuclear power production. There was no underlying strategy or masterplan for this decision at the time. To accomplish such a swing in such a short period of time you cannot rely on market mechanisms alone.