Relief package causes energy prices to rise
Supply and demand determine the price - this is the basics of the market economy. The collapse in Russian oil and gas supplies while demand remains constant is causing our energy prices in Europe and inflation to skyrocket. In order to mitigate the consequences for the population, the german government is planning a EUR 200 billion relief package for all affected households. This may please citizens in the short term, but it overlooks a fact that is important for the market economy: this measure is expensive, fuels demand and causes prices and thus inflation to continue to rise. To compensate, the federal government is planning to reactivate or expand fossil fuel sources that have been decommissioned, such as nuclear power or climate-damaging lignite-fired power plants and liquid gas terminals. This means that our common climate goals are a long way off and follow-up costs are already being incurred today.
Overcome the energy crisis with an investment offensive
In a recently published article, the recognized think tank Agora Energiewende published a remarkable counter-proposal to an anti-inflationary package, “with which Germany can structurally overcome the fossil energy crisis and at the same time strengthen climate protection *1). This should be possible, among other things, with an investment offensive in renewable energies, energy efficiency and electricity-based systems in industry and buildings. It is financed via an anti-inflationary package that would be fully self-financing through the savings on fossil energy imports.
“With energy efficiency, renewable energies and consistent entry into the circular economy, we can permanently replace fossil energy imports and secure affordable energy prices. Our package of measures has a triple effect - for climate protection and energy security and against inflation," says Simon Müller, Director Germany of Agora Energiewende.
Efficient lighting as part of the solution
The founder and managing director of German LED Tech GmbH, Stefan Svanberg, confirms that we must act purposefully and not argue about means such as electricity and money: "Just by replacing all the electricity-guzzling and toxic fluorescent tubes that are still installed with modern LED tubes you can immediately save 9% of the total electricity consumption in Germany. That's more natural gas than we imported from Russia to generate electricity in 2021 **2). And an exchange for modern LED technology such as energy-efficient GLT TUBEs is possible immediately without investments thanks to the flexible rental model from German LED Tech.
**2): Fraunhofer-Institut: Strom-Report 2021