© Reuters. FILE PHOTO: Wind turbines stand out in the sky as the sun sets over the Black Forest on November 10, 2020, with the French Vosges mountains behind. Photo taken from the Brandenkopf lookout near Zell am Hamersbach, Germany, November 10, 2
BERLIN (Reuters) – The fallout from the conflict in Ukraine could accelerate Germany’s green energy transition, despite Berlin’s decision to reconnect coal-fired power plants to compensate for falling fossil fuel supplies in Russia, a study published on Sunday showed.
The German government has been pushing for a transition to renewable energy, with a target of 80% of the country’s electricity generation by 2030.
Research by credit insurer Allianz (ETR:) Trade found that Germany’s green energy target could increase the share of renewables in the electricity mix in the medium term, even more than needed to meet Paris climate goals by 2035.
The increase in coal-fired power, which the German government approved earlier this month, would not increase carbon dioxide emissions in the EU, as production would be capped by the EU’s emissions trading system, the study found.
Coal is unlikely to be a long-term substitute for Russian gas due to higher EU emissions trading prices, the study said.
“(Coal-fired power) is going to be driven out of the market,” said study author Marcus Zimmer.
He also said the planning and approval process for renewable energy must be simplified and accelerated in order to achieve the German government’s goals.
The study estimates that Germany’s renewable energy expansion in the power sector will require an annual investment of around 28 billion euros by 2035, while from 2022 to 2035 the industry will need around 440,000 workers to meet the target.