Possible impact of ENERGIEWNDIE on German Economy in the

Future

Energy Opportunity into Economic Reality

Germany can tap on its resourecs to bring about significant growth in its
Economy as a whole .There are 2 major facets that need to be addresses
to maximize the economic potential .
1) Become a leader in new products via cheap energy.
There are sectors in the industry which are relatively small but the
cost differentiatior is the energy cost . These segments though
small present a lot of potential as they are growing above average
growth rate of 13% upto 2020. These segments are estimated to
add EUR 2140 billion by 2020
2) Productivity of Energy should be increased to save costs
Industries and householf should make optimum utilization of the
energy resources which should save an estimated EUR 53 billion p.a
to the german economy .Incentives can reduce energy consumption
by 20%

Renewable energy resources brinsg about a win win situation for all . On
one hand you have environment sustainability and on the other hand you
have economic prosperity. Looking at the bigger picture this might seem
to be a very tempting sector for Germany to build on in the futute . In
spite of the benefits therr has been some major setbacks in the whole
renewaasble energy affair which will be analysed further as follows .
1) Prices of Eletricity
Accoridng to a report . the retail price of energy has actually
increased for the ultimate consumers by 3% , incorporating it as a
part of future inflation. On the other hand te wholesale energy
prices have come down benifitting the industries reliant on huge
energy consumption. This scenario also has two impacts , rising
profits for company dependent on energy due to lowering costs and

delciing profits of the electricity producers like Vattenfall , Eon and

RWE.
the sectors in which energy plays a strategic role are expected to
grow
only slightly faster than global GDP up to 2020, i.e., at rates of 3.1
percent p.a.
2) Employment
Renewables has been deemed as the job motor for Germany . By 2020
4000000 jobs are exoected to be created in this sector .Sustained
employmenet growth will have an overall economic prosperity for the
country . Though the numbers seem very high , a major downturn is the
loss in the jobs in the conventional sources if generating electricity ,
whereby the new jobs act only as a replacement measure . Adding to the
job losses will be loss on consumers overall purchasing power .

3) GDP

Energiewende also promises to positively impact Germanys GDP. By 2030, German

renewable energy exports are expected to reach 4769 billion (33-48 billion in 2005
Euros). Energiewende also promises to positively impact Germanys GDP. By 2030,
German renewable energy exports are expected to reach 4769 billion (33-48 billion
in 2005 Euros). In addition, as of 2013, farmers and individuals owned renewable
energy investments amounting to over 100 billion. mport substitution reduces the cost

of imported fuels and strengthens the balance of trade and payment. This is not just
a short-term fix but implies the development of a broad and deep value chain on
renewables, smart grids and storage within Germany.