German energy transition could be 300 billion euros cheaper with more efficiency.

Germany could save more than 300 billion euros ($326.49 billion) by 2035 by implementing the energy transition more efficiently, according to a study from the Boston Consulting Group and the country’s BDI industry association released on Thursday.

Germany is expected to spend hundreds of billions of euros on its transition towards greener energy sources in the coming years, with the goal of carbon-neutrality by 2045. At the same time, Berlin faces pressure from industry to bring down stubbornly high energy costs.

The BDI study calculated the savings based on current plans, which are expected to cost 1.57 trillion euros over the next 10 years in operation, expansion and maintenance of the energy system.

“With better coordination and planning, the energy transition could become more than 20% cheaper over the next 10 years – while simultaneously reducing emissions,” said BCG partner Jens Burchardt.

The costs of the German electricity system have increased by around 70% since 2010 and further increases are foreseeable, the lobby said. Gas prices are five times higher, and electricity prices up to 2.5 times higher than those of international competitors.

Source: Globalbanking&finance