Most of the top executives do not consider the federal government’s current expansion plans to be transparent and comprehensive enough / Germany’s lead in renewable energies is lost in the long term from the point of view of those surveyed – other countries are positioning themselves at the front
According to current plans, the federal government wants to cover 80 percent of the country’s electricity consumption with renewable energies by 2030 in order to still be able to achieve the goal of climate neutrality by 2045. Not only the energy industry has expressed doubts that this can succeed. Across all sectors, 92 percent of those responsible for the company are calling for the expansion to be pushed even harder and, above all, in a more targeted manner. Around two thirds criticize the lack of transparency with regard to the status quo and specific measures to achieve climate protection goals. These are the results of a current study by the management consultancy Horváth, for which 100 top executives from large German companies were surveyed, as well as 80 managers from seven other countries.
The majority of the German executives interviewed for the Horváth study doubt that there is any transparency as to which areas – from industry and agriculture to housing and transport – Germany is currently on in terms of CO2 emissions against the background of the energy crisis and which measures are being taken concrete measures must be taken in order to achieve climate neutrality by 2045. 64 percent put this assessment on record in the study. There is almost unanimity among those surveyed that the expansion of renewable energies would have to be promoted even more (90 percent).
“The programs and plans announced by the federal government do not yet provide a convincing overall picture for many responsible persons from the economy and do not appear to be sufficient in view of the increasing energy demand,” says Helmut Ahr, CEO of the management consultancy Horváth. As an example, Ahr cites the announced 10,000 new wind turbines that are to be installed by 2030 as a result of the Acceleration Act for faster approval processes. “That sounds like a lot, but on closer inspection it is the required minimum and not particularly ambitious in an international comparison,” says the spokesman for the board. As the study also shows, companies are not particularly optimistic that Germany will set standards again in the future when it comes to renewable energies. 60 percent consider it unrealistic that Germany can regain its once leading role within the next ten years.
Canada sees itself ahead, USA is following suit – North America as an attractive market for investments in green transformations
As the international comparative survey of the Horváth study reveals, Canadian companies are most likely to believe that their country is capable of global leadership. Two-thirds of the top executives surveyed see Canada as a global leader in renewable energies in ten years. This self-confidence seems justified. The share of renewable energies in total consumption in Canada is already two-thirds. The green electricity is mainly generated by hydropower. Canada plans to use 100 percent green electricity as early as 2025, including through the expansion of wind energy and solar parks. The integration is supported by 30 hydrogen hubs. In neighboring USA, only a third of the managers surveyed see the potential for their national economy to play a leading role in renewable energies internationally. But that can change quickly. “As a result of the new political course set by the Inflation Reduction Act in the USA and growth funds and tax breaks in Canada, the entire North American market will develop enormous potential, in particular through the construction of wind turbines and investments in hydrogen production,” says Horváth CEO Helmut Ahr. “This is an extremely relevant development for the German energy industry. Here, priority should be given to identifying and prioritizing investment fields and forming strategic partnerships.”
In Europe, Great Britain is advancing
Within Europe, Britain and Spain are particularly confident about their future roles. Here, 60 percent of the executives surveyed assume that their country holds a top position. The United Kingdom has caught up rapidly and has increased its share of renewable energy in total electricity consumption from 12 percent to 40 percent within two years since 2019, mainly through the expansion of wind power. Surplus wind energy can be exported to Norway via the “North Sea Link” underwater power cable, which will be commissioned in 2021, and from there to the island when the hydropower is calm. By accelerating the tenders, wind power will be massively expanded, and solar power and biomass will be promoted. Great Britain’s goal of a completely green power supply by 2035, as envisaged in Germany, therefore seems extremely realistic. Ireland’s wind power expansion plans are similarly ambitious. By 2050, 30 gigawatts of electricity are to be generated with newly installed offshore farms. Spain, on the other hand, currently at the level of Germany with a share of almost 47 percent of electricity produced from renewable sources, is focusing on the expansion of photovoltaics. But there is a problem with the bureaucracy.
“The competition for green energy sources, strategic partnerships and storage technologies is in full swing. If Germany doesn’t want to fall behind, politics must give top priority to creating the right framework conditions,” says Horváth CEO Helmut Ahr. “The good news: The economy is ready to bear the necessary price increases and is stable enough to absorb them. In addition, the companies are pushing ahead with their own climate goals and are optimistic that they will achieve them.” via photovoltaics), but the savings and replacement of the energy sources oil, coal and gas. These still make up four times the amount compared to electricity generation.
About the study
For the current Horváth study “Sustainability in an international comparison”, 180 top managers were interviewed internationally, 100 of them from Germany. The managers come from companies with at least 100 million euros in annual sales, across all industries. The interviews were conducted in December 2022.
