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Transforming Germany鈥檚 energy system to achieve climate neutrality is key to securing industry competitiveness in the southern state Bavaria, but delays in expanding the national power grid is are major hurdle, . 鈥淭he energy transition is a top priority not only for the climate, but also for the competitiveness of our business location,鈥� said vbw head Bertram Brossardt. He added that if the energy crisis was the 鈥渕other of all crises鈥�, then the energy transition should be seen as the 鈥渕other of all crisis solutions鈥�. However, delays of key power transmission lines from Germany鈥檚 wind-rich north to the south has threatened supply security in Bavaria, said Brossardt.

The industry association presented its 11th report which monitors the energy transition throughout the state and nationwide, which was prepared by consultancy Prognos. The report 鈥� which looks at the pre-energy-crisis status of 2021 鈥� showed little progress, with almost all indicators (affordability, energy efficiency and renewables, environmental impact, supply security) on red 鈥� the lowest rating. 鈥淲here we are really good, Europe-wide and worldwide, is our low power interruption duration per customer,鈥� said Prognos director Almut Kirchner. This gave Germany 鈥渁 good starting position鈥� with a highly stable grid, even with a record share of renewables in electricity consumption. 鈥淚f you had said 20 years ago that we would have 50 percent renewables in the mix today, we would have been called crazy.鈥� However, she called the grid expansion delay 鈥渢he most depressing result鈥� of the report, causing 鈥渂illions of euros鈥� in re-dispatch costs which 鈥渙ne could do better things with鈥�. Kirchner warned that key north-south lines would not be ready before 2027 or 2028, three years later than planned.

Germany鈥檚 power grid ranks among the most reliable in the world, despite the increasing share of fluctuating renewable energy sources, but expansion has been lagging for years. With Germany鈥檚 goal of becoming climate neutral brought forward to 2045, more and more sectors will depend on electricity as their main energy supply. But building new powerlines has proved a fraught process, plagued by public resistance.