One of the things I love about social media is sharing information amongst the people in my network. Today I was sent a link to a news story that a couple of people thought would interest me. They were right, though I admit to being a bit embarrassed that the story came from Reuters and I failed to see it.
The story was about Germany’s decision to pull the plug on its nuclear industry in 2022. The viral nature of the Internet ensured that every detail of the Fukushima disaster unfolded in real-time. Given this and the overall political climate in Germany, one can’t be surprised at the motivation behind this decision.
I think the bigger implication is the impact to the German economy and its competitive position in the global economy. Energy sources that are predictable are a significant dependency that all industries need to manage for growth. Predictability extends to both cost and reliability.
Now I am very supportive of an energy strategy that looks to leverage energy sources that are renewable, however the key phrase is energy strategy, not energy policy dictated by political strategy.
For Germany to succeed they will need to step away from politics and get serious about developing a comprehensive strategy and execution plan to achieve their goal. Setting dates and backing into plans generally does not work in achieving the goal, but it sometimes can be effective as a catalyst in the early stages of a transformative project.
A comprehensive strategy will need to cover all aspects of the energy value chain and achieve the right balance of scalability, efficiency and cost.
Energy sourcing -> Transmission/Storage/Distribution -> Consumption -> By-Product Management
There are initiatives around renewable energy sources as well as others such as the Smart Grid for advancing capabilities in Transmission/Storage/Distribution.
By-Product management is an area that is under estimated when looking at the metrics for measuring the economic impact of any energy solution. We have entire industries that focus on toxic waste management, many of which have created innovative technologies and solutions, though I’d have to say that innovation needs to drive solutions that avoid issues, not to clean-up the aftermath.
Hopefully Germany (and any other countries that follow) will avoid looking for that elusive single solution that solves all energy problems. The answer will come in the form of fit for purpose energy sources that are specific to geography, climate and consumption patterns. The answer will likely be some combination of renewable and non-renewable energy sources.
Given the fact that Germany is already a world leader in the use of wind power and seems to have the right social climate needed for change, it will be interesting to see how this evolves over the next several years.
Comments and thoughts are always welcome.
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