The CEO of E.on, the Germany energy firm, says that the country’s shutdown of seven nuclear reactor facilities could create blackouts in the country, according to Der Spiegel.Johannes Teyssen of E.on refused to get brought into an argument over the legality or political timing of German Chancellor Angela Merkel’s plant shutdown, but did offer his take on what the impact would be for German energy supplies.
From Der Spiegel:
The grids are not designed to handle such a serious redistribution of loads. Major capacities will be eliminated in the south (of Germany) as a result of the power plant shutdowns. We lack the necessary power lines to transmit wind-generated electricity from the north. This could lead to massive problems in the grid, even power outages.
Earlier, it was reported the shut downs in Germany were going to raise prices for energy as much as 10% and cost energy companies $800 million. With the geopolitical energy price surge already hitting Germany, and an ECB rate hike looking more and more likely, blackouts could be another threat to add to your downside risks for the German economy in the short-term.
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