Isolating its wind & solar generation (RES) for the month of Sept however reveals future challenges.
GER had 9 days in Sept with little #wind. Not just Germany, all of Europe. On avg, GER used 2.7GW of its 62GW wind cap.
That is a capacity factor of 4.5%. Ouch!
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While Sept turned GER into an importer for 2d (from CZE, SWE & DK) to cover consumption (FRA couldn't help; coal maxed out), RES also required it to export excesses during 15d.
Its Energiewende already turned GER into an imp/export "junky" as d-s are tough to match.
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So what?
Well, GER is scheduled to turn off all coal assets by 2035 (nukes by 2022; ex grid reserve) & replace it with wind & solar.
Only NatGas is permitted to complement intermittant RES in coming years - such are the directives of Germany's green energy laws today.
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Many "experts" claim that this is a good thing, both for the climate and the consumer.
That is because RES will basically bring prices of electricity near-zero.
I kid you not - that is an official claim, among other, by its renewable lobby.
5/n
GER's Energiewende would require many conditions for it to work - none of which will be met by 2035, if ever.
One such condition is higher cross-border cap. In Sept it would have required 720GWh/d of imports (ex coal & nuclear) to cover its load. It has 52GW imp cap today.
6/
Did neighbours agree to increase cross-border cap with GER (future storage & transmissions should reduce total need) or is it uncoordinated?
Will neighbours have excess generation cap ex RES (same climate) to match future peaks? Today's c-border balancing doesn't suggests so!
U see, electricity was never only about energy assets (or their emissions) & always about timing & location too.
Wind will primarily be located offshore (north). Much of it will have to be transported south (industry). That will require a doubling of transmission lines.
7/
I'm afraid this target too will prove impossible to achieve by 2035 (despite a grid acceleration law since 2016) as nobody wants a new transmission line in the backyard.
At the current pace, GER would complete 50% of its grid expansion by 2035.
8/
We covered, among others, the challenges for more chemical storage in our thread here.
GER will require >15TWh of c-storage to cover so called "Dunkelflauten" - prolonged periods without wind or sunshine in Jan/Feb. It has a few MWh today.
For past 20y GER energy policy wasn't about emission.
Instead, ideology (Greens), campaign panic (CDU/CSU; Merkel’s nuclear exit post Fukushima) or personal entanglements (SPD; Schörder’s push for Russian gas) dominated decision making. Blame them all.
10/
For that purpose, the GER public was told that nuclear is an uncontrollable risk - a lie!
Its Energiewende, however, risks an "economic meltdown" if it doesn't allow for a nuclear renaissance to meet its de-carbonisation targets - a fact!
The European electricity grid is a modern miracle. It is the largest synchronous electrical grid (by connected power) in the world. It interconnects 520 million end-customers in 32 countries, including non-European Union members such as Morocco or Turkey.
- Consumption: -12.2% yoy;
- RUS pipe imports: -48% yoy (inc. RUS LNG imports -42%);
- Local Production: +0.6% (Groningen could increase EU production by 10% alone within weeks);
- LNG imports: +70%.
- Net storage build: 45bcm!
- ITA, FRA, GER, POL or CZE have done a great job saving gas to fill salt cavities et al "whatever it takes style".
- UK cannot b/c it lacks storage;
- EE struggles to access more flows;
- EU covers 51 of 180 winter days (<2 months).
The European electricity crisis is deepens as it proves hard to save gas.
1) 🇫🇷 had to reduce nuclear output further due to high river temp (u can cool the reactor, but cannot let water back into the river to protect wildlife).
Result: Nuclear output (in MWh) collapses.
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As I explained in the past days, 🇫🇷 has Europe's 2nd largest grid and was an exporter for as long as we can measure it. Not anymore.
In the context of the 🇩🇪 grid struggling too due to gas shortages, the list of issues gets longer by the week!
European electricity prices are spiking for all major economies except for Spain. But also Spanish consumers pay 3x more compared with only May 2021.
2/n
In fact, most European power prices are 12-15x higher than they were in 2015. Needless to say, the European industry will go into a deep recession at these prices.
Starting June 2nd, Cu collapsed 29% in less than six weeks. How often did that happen?
Answer: not often! In past 25y Cu crashed only 8x >7% in a single week as in one week this June (stat below) & only 29x >5% (2x per week in June & July 2022).
Big quantamentel signals!
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How is that possible, when global reported inventories (LME; Comex; Shanghai) are below their 10-year average? Aren't commodities priced on inventories?
Chart: Global Cu inventory (reported by exchanges); Source: Bloomberg 3/n