This is the first time an official estimate has been provided, but Germany anticipates the cost of upgrading its natural gas and heating networks to total up to €14 billion ($15 billion) by the end of the decade.
According to a paper from the Economy Ministry reviewed by Bloomberg, the nation plans to start using hydrogen and increase district heating to lessen its heavy reliance on fossil fuels and reduce overall carbon emissions by two-thirds by 2030. For the following seven years, each network update will cost roughly €1 billion.
If the government’s climate targets are to be achieved, cleaning up heating systems and replacing gas are crucial issues that must be addressed. The expense of the energy transition is becoming a political problem, despite the fact that officials contend that relying on fossil fuels will be more expensive in the long run. A plan to outlaw boilers in the following year is being watered down by the administration as a result of pressure from the Free Democrats.
The German government’s goal to transition to renewable energy sources, according to the think tank Agora Energiewende, might result in the decommissioning of over 90% of its gas distribution network, endangering stranded assets worth €10 billion.