According to a new study, investments totaling 721 billion euros will be necessary until 2030 to achieve the federal government's energy transition goals. This is clear from the “Energy Transition Progress Monitor” presented on Tuesday by the consulting firm EY and the energy industry association BDEW.

“Very ambitious objectives have been set”: the energy transition is expected to cost hundreds of billions of euros until 2030

“To combat climate change, the federal government has set very ambitious goals,” he said. The share of renewables in electricity generation is expected to increase to 80 percent by 2030. Compared to 1990, greenhouse gas emissions are expected to decrease by 65 percent. The Frankfurter Allgemeine Zeitung had previously reported on the progress monitor.

The expansion of renewable electricity generation alone represents the largest part of the total calculated investments, with 49 percent, i.e. 353 billion euros. This is followed by the expansion of transport and distribution networks with 281 billion euros. Significantly lower amounts are estimated for investments in the district heating network (32 billion euros), in green gas generation capacities, for storage and for the central hydrogen network.

Investments promise growth and regional added value

The investments could deliver significant growth and regional value creation, said EY Head of Green Transformation and Mining and Metals in the Western Europe region, Metin Fidan. Manufacturers of capital goods such as wind turbines, solar panels and electrolyzers benefited from this.

Compared to the previous year, the expansion of renewable energy and electricity networks advanced significantly in 2023. Despite all the progress, the pressure to act to achieve the 2030 objectives remains high, explained the president of the BDEW headquarters, Kerstin Andreae. “The progress that has been made in accelerating the planning and approval processes is positive. This trend must be maintained and strengthened further.”

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