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Is Germany Making Too Much Renewable Energy?

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Wind turbines are seen on a plain near Bremerhaven, Germany on Dec. 26, 2017. PATRIK STOLLARZ/AFP VIA GETTY IMAGES

For Germany, 2020 was a banner year in the production of renewable energy. Clean energy sources??ind farms and solar arrays as well as hydroelectric and biogas plants??atcheted their share of power consumption up to 46 percent, nearly equaling that of coal, gas, oil, and nuclear power combined. And after a period of stagnation in the 2010s, the greenhouse emissions of the world?? fourth-largest economy have been dropping again, last year by around 80 million tons of carbon dioxide. That puts Germany 42 percent down from its 1990 emissions level, thus surpassing its decade target by 2 percentage points. This trajectory is good news for Germany??nd for the EU, which wants to turn the continent carbon-neutral by 2050.

Yet Germany?? move to a power system largely reliant on weather-dependent renewables is quickly running up against limits??ssues that all countries exchanging conventional fuels for wind and solar will eventually face. What happens when the sun doesn?? shine and the wind doesn?? blow for hours or even days at a time? And what about the short, dark, cold days of midwinter when renewables of Germany?? power demand?

And it?? not only shortages that are problematic but also surpluses: Stormy days can be so windy that the power flows from wind parks on- and offshore overwhelm the power grid, even triggering its collapse.

These electricity tsunamis can threaten the stability of neighboring countries??energy systems, a brickbat the Poles and Czechs wield. Moreover, when there?? excess power in the grid, prices can go negative, forcing grid operators to pay customers to take the electricity,

The transition from a conventional energy system with 24/7 production to one based on intermittent renewables entails more than just swapping one set of energy sources for another; it demands rethinking and restructuring the entire energy system.

Georg Stamatelopoulos, an energy expert at the utilities company EnBW, sums up the conundrum: ??enewables now cover around half of the demand, and there is still sufficient available power in the system and there is still the possibility of obtaining electricity from our neighbors. What is certain, however, is that further expansion of renewables will increase the volatility in the system. That is why we will always need available service, i.e., service that is available to us when we have the corresponding need.??/p>

Energy blackouts are the bugbear that industrialists and the conventional energy sector have long warned about in ominous tones. Too much or too little power in the grid can indeed prompt energy shortfalls, causing whole regions to go dark and assembly lines to halt. But thus far, in highly industrialized Germany, blackouts have not??et??ome to pass. There?? been no countrywide blackout for years, and last year, the average German experienced just 12 minutes of outage: the lowest in Europe and infinitesimal compared the U.S. citizen?? 2019 average of 4.7 hours.

The Germans??feat was possible, however, only because the country has mostly just added clean energy capacity to the supply over the last two decades, investment encouraged through price supports that make its energy among the most costly in Europe. At the same time, the country maintained much of its fossil fuel generation and a handful of nuclear plants. The surplus power is exported??t a handsome profit for coal-plant-owning utilities.

This whole calculation is changing dramatically, however, as Germany moves to shutter its coal-fired plants (the country?? last will close, at the latest, in 2038) and nuclear power stations (which will be disconnected from the grid in 2022). On Jan. 1, 11 coal-fired plants??ine in North Rhine-Westphalia and two near Hamburg??ent dark, and others will soon follow. Of the six remaining nuclear plants, three will terminate at the year?? end and the final three a year later.

Moreover, while utility power storage options, such as batteries, are quickly improving, batteries still don?? have the capacity to bottle up enough clean power for Germany to hold out even for a couple of fossil-free hours, much less days. Another factor: Even if energy efficiency improves dramatically??hrough the mass insulation of buildings and modernization of their energy systems, for example??ermany will in the future still need more power than it uses today for its fleets of electric cars and trucks, for public transportation, for electrified heating, and for producing the hydrogen and e-fuels that will fly planes and produce cement.

This drop-off is steep and fast, and it throws the Germany energy system into unknown territory??here the interests of energy providers, environmentalists, politicians, and grid operators clash fiercely. There?? more than one way to balance the grid, and it will have wide-ranging implications for Germany?? march to carbon neutrality.

The German gas sector and most German industry underscore that flexible, gas-fired electricity generation is the perfect partner for fluctuating renewables. Indeed, the most modern gas-fired power plants emit significantly less carbon than coal and oil. (Damning reports about gas methane emissions, another greenhouse gas, have tarnished its brand but not enough to disqualify it.) The gas lobby and many experts want more state-of-the-art gas-fired plants constructed, which they say will operate to 2050 and beyond. The gas companies, which now advertise their product as ??reen energy,??are naturally all in favor of replacing nuclear, coal, and oil with their product as fast as possible. Gas-fired electricity, they argue, will also be essential to producing hydrogen, which will power fuel-celled vehicles and produce synthetic fuels as well as store electricity.

Economists, however, point out that as higher carbon pricing boosts the surcharge on carbon dioxide to new highs, natural gas will price itself out of the market. ??as looks like the easiest answer,??said Toby Couture, director of E3 Analytics, an independent renewable energy consultancy in Berlin. ??ut in the near future, gas is increasingly likely to be outpriced. The question is: Can other technologies and approaches balance more cheaply? And the answer is yes.??/p>

Experts like Couture say demand management has enormous, thus far mostly untapped, potential. Through price incentives, massive quantities of power demand can be shifted from, for example, daytime peaks to night hours when demand is almost none. The state-financed German Energy Agency argues that management of electricity demand can be accomplished through ??he targeted switching off and on of loads according to market signals. This can be done ??in mills, furnaces, or pumps.??/p>

??n short,??Couture said, ??hat we need to do is flip the previous paradigm on its head used to build power plants to meet demand. Now we need to intentionally shape our electricity demand so that it is better adapted to our supply: variable, renewable, and abundant.??/p>

Storage is the obvious go-to option. Utility-size batteries can give back in the dark the surplus they collect during the day??nd tank up on super blustery days so upsurges don?? crash the system or cost grid operators. Other, non-battery means of storage, such as hydrogen, seawater, and aluminum storage, are currently advanced enough to pitch in. ??ven when the excess electrons aren?? enough to crash the system, they have to go somewhere. Now, absurdly, power stations are shut down or other countries actually paid to take this electricity off Germany?? hands,??said Gretchen Bakke, author of The Grid: The Fraying Wires Between Americans and Our Energy Future.

Battery technology has advanced vastly in recent years and already contributes to the short-term reliability of Germany?? grid. California has gone further, though: Utility battery developers have actually undercut the prices of gas companies to provide back-up capacity to the state?? energy system. California energy authorities expect that storage coupled with deft energy management and renewables will replace natural gas and coal-fired generations across the American West.

Most importantly, according to climate experts, is the broad, rapid rollout of renewables??ive to 10 times what Germany now has??ncluding geothermal, bioenergy, hydroelectric, and wave/tide energy, all of which are less weather dependent than solar and wind. Until then, even environmental groups like Friends of the Earth and Greenpeace acknowledge that natural gas is going to be part of the solution??hough exclusively as reserve capacity that may run just 5 or 10 percent of the time. ??as will be like a fire brigade,??said grids expert Werner Neumann of Friends of the Earth. ??here for when we need it and compensated accordingly.??/p>

Cross-border trade in energy is another way to compensate for shortfalls. Policymakers in the European Union have sketched visions of a long-distance smart transmission network that would extend from the Arctic Circle to the Mediterranean Sea, capable of seamlessly balancing shortfalls and surpluses??ventually with 100 percent green energy. Trans-European energy grids will be linked to decentralized small-scale grids and plants, making the dream come true of an EU-wide energy market. Although the project is in motion and already helps shift power between Germany and Denmark, as well as France and the United Kingdom, it won?? cover all of Europe anytime soon.

ABOUT THE AUTHOR:

Paul Hockenos is a Berlin-based journalist. His recent book is Berlin Calling: A Story of Anarchy, Music, the Wall and the Birth of the New Berlin (The New Press).

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Concrete

FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

 

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Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

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Concrete

JK Cement Crosses 31 MTPA Capacity with Commissioning of Buxar Plant in Bihar

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JK Cement has commissioned a 3 MTPA Grey Cement plant in Buxar, Bihar, taking its total capacity to 31.26 MTPA and placing it among India’s top five grey cement producers. The ₹500 crore investment strengthens the company’s national footprint while supporting Bihar’s infrastructure growth and local economic development.

JK Cement Ltd., one of India’s leading cement manufacturers, has announced the commissioning of its new state-of-the-art Grey Cement plant in Buxar, Bihar, marking a significant milestone in the company’s growth trajectory. With the commissioning of this facility, JK Cement’s total production capacity has increased to 31.26 million tonnes per annum (MTPA), enabling the company to cross the 30 MTPA threshold.

This expansion positions JK Cement among the top five Grey Cement manufacturers in India, strengthening its national footprint and reinforcing its long-term growth strategy.

Commenting on the strategic achievement, Dr Raghavpat Singhania, Managing Director, JK Cement, said, “Crossing 31 MTPA is a significant turning point in JK Cement’s expansion and demonstrates the scale, resilience, and aspirations of our company. In addition to making a significant contribution to Bihar’s development vision, the commissioning of our Buxar plant represents a strategic step towards expanding our national footprint. We are committed to developing top-notch manufacturing capabilities that boost India’s infrastructure development and generate long-term benefits for local communities.”

The Buxar plant has a capacity of 3 MTPA and is spread across 100 acres. Strategically located on the Patna–Buxar highway, the facility enables faster and more efficient distribution across Bihar and adjoining regions. While JK Cement entered the Bihar market last year through supplies from its Prayagraj plant, the Buxar facility will now allow the company to serve the state locally, with deliveries possible within 24 hours across Bihar.

Sharing his views on the expansion, Madhavkrishna Singhania, Joint Managing Director & CEO, JK Cement, said, “JK Cement is now among India’s top five producers of grey cement after the Buxar plant commissioning. Our capacity to serve Bihar locally, more effectively, and on a larger scale is strengthened by this facility. Although we had already entered the Bihar market last year using Prayagraj supplies, local manufacturing now enables us to be nearer to our clients and significantly raise service standards throughout the state. Buxar places us at the center of this chance to promote sustainable growth for both the company and the region in Bihar, a high-growth market with strong infrastructure momentum.”

The new facility represents a strategic step in supporting Bihar’s development vision by ensuring faster access to superior quality cement for infrastructure, housing, and commercial projects. JK Cement has invested approximately ₹500 crore in the project. Construction began in March 2025, and commercial production commenced on January 29, 2026.

In addition to strengthening JK Cement’s regional presence, the Buxar plant is expected to generate significant direct and indirect employment opportunities and attract ancillary industries, thereby contributing to the local economy and the broader industrial ecosystem.

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