ENERGY

Germany Surpasses China as the Second Leading Nation for Green Energy Investment

Germany has surpassed China, becoming the second most appealing nation for investment in renewable energy sources, according to recent studies. This surge is largely attributed to Germany’s ongoing efforts to fast-track power market reforms and gradually shift away from fossil fuels. According to an annual study of the top 40 global renewable energy markets conducted by EY consulting firm, the United States continues to hold the top spot. For the first time in ten years, Germany has ascended to the second rank.

Formerly the largest European importer of Russian gas, Germany has historically been dependent on nuclear power and coal. However, it shut down its final three nuclear plants in April. The report indicates this significant development in Germany’s journey toward expedited energy transition targets may necessitate a temporary rise in coal usage to counter the inconsistency in power supply.

Germany has set an ambitious target to derive 80% of its energy from renewable sources by 2030. As of now, renewables contribute 46% of the nation’s energy, an increase from 41% at the start of 2022, according to the report. The United States remains at the top of the index, bolstered by the enactment of the Inflation Reduction Act last year, which sets aside $369 billion for enhancing energy security and addressing climate change.

Nevertheless, there’s a significant bottleneck of green energy projects waiting for regional grid connections. Despite growth in the offshore wind sector, the U.S. administration’s objective of achieving 30 gigawatts (GW) of offshore wind power by 2030 seems to fall short by 10 GW, based on the current schedules provided by project developers, as per the report. In the meantime, India has leapfrogged Australia to claim the sixth position in the index, fueled by the rapid expansion of its renewable energy industry, notably solar power.

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