McKinsey monitoring the German Energy Transition

Since 2012, the global management consultancy McKinsey has a mandate for monitoring the German energy transition. Every six months, a set of indicators gives an overview of how the goals in three different areas (climate and environment, security of supply and economics) are met.

The bi-annual report and the overview of the indicators is being published online here (in German only).

In their latest report (H1/2016) McKinsey concludes that the costs of the grid interactions are “exploding”, and there are bottle necks for the further expansion of renewables. This means, more systems integration is necessary. Also, the indicators are more and more pointing to extremes: While off-shore wind installation is significantly above target, for example, the electricity prices or CO2 emissions are completely off target, i.e. much higher than anticipated (reaching the respective goals is more and more “unrealistic” as per the report).

Therefore, it is important that other countries not only follow Germany with renewables expansion, but also avoid the potential mistakes, especially in terms of environment and CO2-emissions.

Otherwise, why even embark on an energy transition, if the environmental goals can not be met?

mckinsey-indicators-h1-2016

Table: Indicators of the McKinsey monitoring of the German Energy Transition, H1/2016