Germany's electrical and digital industry is urging a faster expansion of the country's power grid. The infrastructure is not designed to meet the demands of the energy transition away from fossil fuels, said Wolfgang Weber, chairman of the management board of the German Electrical and Electronic Manufacturers' Association (ZVEI).
German industry experts expect annual electricity demand to at least double from today's 550 terawatt hours to as much as 1,200 terawatt hours by 2045. Among other things, the association is expecting there to be 15 million charging points for electric cars and six million heat pumps. In terms of renewables, it says this will require a 4.5-fold increase in generation capacity. "Without a strong power grid, there will be no climate neutrality. The future power grid must be transformed into a climate-neutral grid," Weber said.
In addition to the physical grid expansion, more intelligence must also come into the system, ZVEI demands. Through consistent electrification and digitalization, primary energy consumption can be reduced by up to 65 percent. To achieve the climate targets set, the electricity market also needs to be restructured so that consumers can benefit from the attractive prices for electricity from renewable energies via dynamic tariffs.
Currently, the industry is benefiting from the trends toward electrification and digitalization. Last year, according to the association, price-adjusted production in Germany climbed by 3.7 percent compared to 2021. Combined with price increases, nominal sales reached a record high of 224 billion euros, an increase of 12 percent.
Exports, including re-exports, also reached a peak of 246 billion euros. More than half (126 billion euros) went to the European single market, which in the view of ZVEI President Gunther Kegel must be further developed.
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