- Germany is moving to renewable energy sources within the next two decades
- Germany could be leading the way for other developed nations to follow suit
- These strategic plans are validating for the investment thesis of solar and wind companies
Germany’s strategy to shift energy production to renewable sources received a huge boost as the country is allocating 40B Euros ($45.7B) to regions that are still reliant on coal. By 2038, at the latest, Germany hopes to shut down all of its coal plants.
“Less CO2, more new jobs, a secure power supply and affordability: a strong signal,” Economy Minister Peter Altmaier said on Twitter.
Renewable energy sources, such as solar and wind, made up more than 40 percent of Germany’s energy mix last year — beating coal for the first time.
This would be the second big energy move that the German government makes, following the decision to stop producing nuclear power by 2022 in the wake of Japan’s Fukishima disaster in 2011.
Germany Leading Way For Other European Nations
Germany’s move could be an influence for other European nations like Italy, France and Sweden which have also expressed interest in moving to a renewable future.
This shift in policy is good news for renewable companies like First Solar (FSLR) and ReneSola (SOL)
Article by: Francisco Cortez – Delgado
I graduated from Queen’s University with a Master’s of Political Studies. The intertwined world of politics and economics intrigue me. My favourite stories to cover are the ones that show how a few selected officials can impact nationwide macro-economic policies. I also follow the broader markets and FOREX.