Germany Is Dunkelf**ked (In 5 Charts)

Its coalition government, wind energy output, and industrial base are all collapsing.

The reliability of Germany’s electric grid depends, in part, on the Garzweiler mine near Bergheim. During last week’s dunkelflaute, Germany had to ramp up its lignite-fired power plants to keep the lights on.  Credit: Getty Images.

You gotta love the timing.

In mid-October, the German government announced it would provide $17 billion to Germany’s wind energy companies due to concerns that Chinese firms were “gaining momentum in the sector.”

Economy Minister Robert Habeck announced the subsidies, saying, “We must continue improving conditions to keep this industry competitive and ensure future value creation within Germany and Europe. These measures are a crucial step.” Reuters cited “industry experts” who said that the use of Chinese-made wind turbines was “inevitable to meet the EU’s 2030 renewable energy targets” and that the European Commission has estimated that “at least 37 gigawatts of new wind power must be added annually, compared to the 17 GW added in 2023.”

The $17 billion in subsidies for Germany’s wind sector will be added to existing alt-energy subsidies, which the University of Cologne estimates will cost $19.3 billion in 2025, which is $2.1 billion more than expected.

About 10 days after Habeck announced the wind-sector bailout, Volkswagen announced it would shutter three factories, cut tens of thousands of jobs, and slash the pay for its remaining workers due to high costs and plummeting profits. A Volkswagen official, Thomas Schäfer, said the closures are needed because the company is not making “enough money from our cars, while our costs for energy, materials and personnel have continued to rise.”

Volkswagen’s layoffs are only part of the giant shit schnitzel now being digested by the EU’s most-populated country.

Germany has the slowest-growing economy in the Eurozone and the G7. More pain is coming. An October 26 article in  UnHerd cited a recent government poll of 3,300 companies that found that “37% were considering cutting production or moving abroad, up from 31% last year.” This backdrop provides context for what happened last week when Germany’s coalition government — and the country’s wind energy production — collapsed. Indeed, the German word dunkelflaute, which means “dark wind lull,” is a perfect descriptor for Germany, which is facing years of dark times due to a dysfunctional government, soaring energy costs, and plummeting industrial output.

Here’s a rundown of the situation, with five charts.