After World War II, it’s the first time that Germany is ready to take a leap step to enhance its renewable energy project. According to the DIW economic institute in Berlin, a plan is in pipeline where Chancellor Angela Merkel will build offshore wind farms covering an area six times the size of New York City. It will be a gigantic project that can erect power lines stretching from London to Baghdad. This program is estimated to cost 200 billion euros ($268 billion), which is third of annual gross domestic product.
Through its solar and wind projects, Germany is all set to replace 17 nuclear reactors that fulfil fifth of its electricity needs. Stephan Reimelt, chief executive officer of General Electric Co. (GE)’s energy unit in Germany said that Merkel is prepared to experiment with untested systems and policies as well organised to break all technical hurdles intimidating the project.
In a discussion Reimelt said that “Germany is like a big energy laboratory, which has a political and societal consensus to drop nuclear power, but lacks a clear technological solution.”
Such a type of project is green signal for Suntech Power Holdings Co. (STP), the world’s biggest solar panel maker as well as Vestas Wind Systems, the largest maker of wind turbines. However, it is pinching utilities from RWE AG (RWE) to EON AG (EOAN), which have to face cost cutting to curb losses from closing nuclear stations.