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We all need energy

Energy is becoming increasingly expensive and the rate at which prices are rising – whether it be for the journey to work or the holiday trip, heating for your house or electricity for running your TV or electric oven – is now of growing concern to everyone.

IG-BCE Chairman Hubertus Schmoldt warns of delusions in energy policy making.

There is no magic formula, though many would like to give the impression that we can solve the problem of safeguarding future energy supplies simply by buying an energy-saving fridge and insulating our homes. This is not only to play down the problem but shows contempt for those who cannot afford to make such investments. And what is even worse, those who propose such measures are usually the first to complain about the impoverishment of the nation.

Of course we have to be more efficient in our energy use. This saves money and helps protect the environment. Everyone has to do their bit, but even that will not be enough. What we need is a diversified energy policy that is based on reality, not on wishful notions.

Such a policy has to set out from the basic premise that energy will become increasingly scarce and will remain expensive. Those who are banking on energy prices falling are deluding themselves. The consequences are obvious: we have to make use of all the energy resources that are available to us and we must minimise our reliance on the unpredictable developments of the global marketplace. At least this is what we have to do if we want our citizens to have access to affordable energy and if we want Germany to remain competitive as a manufacturing nation. Most people in this country realised this years ago and are all for pragmatic solutions. Yet many politicians remain stuck in an ideological world of their own. It really is strange: world demand for energy is growing apace, but in Germany our policy makers want to be rid of nuclear energy and coal too.

It would be much more sensible to intensify our energy research efforts. This means making renewables more efficient, more competitive and less dependent on subsidies. It means increasing nuclear safety standards. And it means cleaner coal, so that power stations can be made more environmentally friendly with CO₂ capture and storage. Instead of this the different camps continue to parade their dogmatic views. The argument about the operating life of our nuclear plant, for example, is quite simple. Safety levels must be used as the criterion for a plant’s life expectancy, not some set of arbitrarily established figures. If we phase out nuclear power as agreed we will be creating a big gap in our electricity supplies. And even more so if our politicians start making things difficult for those who want to build eco-friendly coal fired power stations.

And yet the obstinacy of those who are resolved to closing down our coal industry indicates that they are incapable of looking ahead. The doubling of coal prices in the course of a year should at least give cause for thought: are we not throwing away any future opportunities by closing our mines down for good? Would it not be better to review the industry run-down sooner rather than later? Energy is vital for the survival of any industrial nation. For this reason we cannot afford the luxury of dispensing with any of the available resources, whether it be renewables, coal, oil, gas or nuclear power.

Source: IG BCE Kompakt, issue no. 09, September 2008, page 7