Germany will have to make a provision for over Rs 83 lakh crore to meet its energy needs

Implications of the sanctions on Russia

Berlin (Germany) – In order to face the challenges created by the energy crisis, the German Government will have to allocate over Rs 83 lakh crore (1 trillion dollars) by the year 2030. This prediction was made by the Global financial establishment ‘Bloomberg’. Russia’s war with Ukraine which started a year ago has prompted all Western powers to scrap all agreements with Russia. But the German economy, which is dependent on Russian natural gas and other forms of energy, has been hit the hardest, with its inflation at its highest level in 30 years.

“Possibly the boldest project since the reconstruction of Germany” https://t.co/5wFrHz4JTD

— Bloomberg (@business) February 25, 2023

‘Bloomberg’ further states in its report –

1. With nuclear and coal off the table, Germany has undertaken a rapid rollout of terminals for importing more expensive liquefied natural gas as it seeks to ensure it has the energy to power its industry-heavy economy.

2. Electric cars, heat pumps and electrolyzers for producing hydrogen are set to raise demand by 33% to around 750 terawatt-hours by 2030, according to Government estimates.

3. The transition will require the installation of solar panels covering the equivalent of 43 soccer fields and 1,600 heat pumps every day.

4. Germany has currently arranged over 681 billion Euros (roughly Rs 60 lakh crore) to provide subsidies at the household as well as business levels to deal with the rising inflation in the energy sector.