By JR on Tuesday, May 15, 2012
Winfried Kretschmann (Green Party), the prime minister of the state of Baden Wuerttemberg, is urging Chancellor Angela Merkel (CDU) to encourage the construction of new gas-fired power plants. Especially in southern Germany where energy security is at risk, according to Kretschmann.
"I am firmly convinced that the market in its current form is not suitable to meet the challenges of the energy revolution," he wrote in a letter to the Chancellor seen by the Financial Times Deutschland. It lacked both the incentives for building new power plants and for the maintenance of existing ones.
Especially in southern Germany energy security is at risk, according to Kretschmann. Germany is heavily dependent on flexible gas power plants to compensate for intermittent green energy. At the same time, however, the green energy boom is having a fatal side effect: Because the production of wind and solar power have been given priority in the electricity market, the building of gas-fired power plants is no longer profitable. Often, it does not even pay to maintain existing power plants. Analysts at Goldman Sachs are already warning of a large-scale demise of power plants in 2013. Grid operators, on the other hand, fear nothing more than the loss of additional power plants in southern Germany, which is particularly affected by the nuclear phase-out.