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Solar energy could be the main body. There are two contradictions in the development of renewable energy in Germany. One contradiction is that 70 per cent of the population lives in cities, but energy production is mainly in rural and mountainous areas. Another contradiction is that population and industry are concentrated in the south, while wind energy is mainly concentrated in the north. Moreover, the supply of wind and solar energy is not stable. In order to meet these challenges, we must establish a complete and intelligent power transmission, storage and distribution system.
Tobias Rocher, a renewable energy expert at the Federal Foreign Trade and investment agency of Germany, believes that the biggest challenge for energy companies in Germany is not to ensure the production of enough electricity, but to distribute energy effectively. "Distribution system operating experts and energy companies are busy developing new models and technologies to ensure that current flows to the right place at the right time, and trying to solve new and pressing problems."
However, the biggest problem facing Germany is that no one is willing to pay for such a huge smart grid investment. A survey of 100 executives of German power companies conducted by Germany's steria mummert consulting company in August last year showed that only half of them are willing to increase their investment in smart grid this year and next. Reuters commented in this regard that the main reason for the "two minds" of power companies is the uncertainty of Germany's new energy policy, their inability to undertake huge investment and their fear of no return.
With the popularization of renewable energy, electric power companies can only increase the price of electricity to share the bottom cost, and the government's renewable energy subsidies are also rising. There will be a general election in Germany in September this year, and the issue of electricity price is bound to become an election topic. Germany's Federal Minister of environment, artmeyer, said Tuesday that the government proposed a proposal to lock in subsidies for power companies in renewable energy. The move is expected to win applause from the public, but expanding investment in energy companies is certainly not good news.