Climate Economist Slams Old Nuclear Plant Revival and Calls for Market-Driven Renewable Energy Policy
Politics

Climate Economist Slams Old Nuclear Plant Revival and Calls for Market-Driven Renewable Energy Policy

Ottmar Edenhofer, Chief Economist at the Potsdam Institute for Climate Impact Research (PIK), labeled the move by CDU group leader Jens Spahn to reactivate recently phased-out nuclear power plants as economically absurd. While Edenhofer stated that his opposition was not ideological, he questioned the entire premise, noting that neither the source of power nor the means of reconstruction were clear. Given the substantial costs involved, he determined that there were no sufficient economic or macroeconomically justifiable reasons for such a push.

Edenhofer agreed with Economics Minister Katherina Reiche (CDU) regarding the construction of new gas-powered plants, arguing that this approach would be appropriate when combined with the continued expansion of renewable energy sources. He further pointed out that large-scale solar installations are significantly more useful than private rooftop arrays. Although individual private efforts in climate protection are valuable, the current regulatory framework creates massive perverse incentives.

According to Edenhofer, private operators often feed energy into the grid when supply is already ample, yet they draw significant power when supply is scarce. Therefore, he criticized the practice of providing a universal, subsidized fixed rate for renewable generation, calling it an example of poor climate policy. Instead, he argued that the feed-in tariffs for solar power must be tied to actual market prices. This alignment, he concluded, would provide consumers with genuine incentives, such as making the intelligent use of home battery storage.