Energy

The paradoxes of green energy

Energy is a commodity traded on the markets. This happens every day, at every moment. If the price of electricity falls, the electricity producer stops feeding his electricity into the grid. However, producers usually have no choice, as wind turbines keep turning and solar panels operate automatically. Energy storage systems are expensive and currently have barely enough capacity to store surplus electricity for hours or days when demand is high.

The more photovoltaic cells feed into the grid, the more frequently this problem arises: too much energy is generated precisely when everyone is producing the most. On sunny days, particularly at midday, there is more electricity than the system can consume. The more the sun shines, the more electricity flows into the grid at the same time – and the more frequently the price drops to zero or below. In extreme cases, the energy producer has to pay extra just to get someone to take the electricity off their hands. The following chart shows how the percentage of hours with negative electricity prices is rising in Europe and individual regions – and in which countries the biggest increases were recorded in 2025.

A negative electricity price is not a gift to the recipient. It is a signal that the system has been ‘overwhelmed’ by the surplus. Photovoltaic operators therefore sell electricity at a lower price relative to the average market value, which is not reflected in the final price paid by the end consumer. Why? Because there are too few energy storage operators willing to buy the electricity for free or at a premium and sell it at peak prices in the evening. Whilst the number of electricity storage facilities is rising steadily, the electricity grid is not being expanded to keep pace with the rapid growth of solar, wind and storage. As a result, on sunny days, photovoltaic plants and wind farms are being shut down more frequently because it is not possible to absorb the electricity. According to reports, 8.5% of onshore wind production was curtailed in the United Kingdom in 2024. In Germany, wind curtailment (onshore and offshore) has been above 5% since 2022, and solar curtailment rose to 2% in 2024. In China, this rose to 4.1% for wind and 3.2% for solar energy in 2024; preliminary figures for 2025 suggest over 5% for both, according to the IEA.

A modern 100-megawatt storage facility requires around 0.5 to 1 hectare of land. How much farmland would be needed for the massive offshore projects involving terawatt-scale wind farms currently being built in the Baltic Sea (for example, in Poland)? How much lithium and other metals – mined in the developing world in ways that are far from environmentally friendly – are required for these large battery energy storage systems (BESS)? Is that sustainable? Really?

I don’t think so. But it is politically correct, because it creates the illusion that we are becoming less dependent on fossil (read: Russian, Putin-controlled) raw materials.

 

 

 

Why must raw materials become more expensive?

Gold

For a gold mine to be profitable, the deposit must contain at least 2 million ounces of the precious metal, as this is the only way to ensure production for many years to come. In previous years/decades, new deposits were discovered and supply was guaranteed. However, in the last two years of the gold rush, when gold was being sought everywhere, no major deposits were discovered anywhere in the world! This is the first time in history and, of course, an argument for a further rise in price.

Petroleum

Shale oil is running out in the United States. According to the latest data from the Energy Information Administration (EIA), shale oil production will gradually decline, mainly due to the depletion of deposits. The Permian Basin, one of the largest and most important shale basins in the world, is expected to produce less and less shale oil in the coming years. The impending supply deficit and the ever-increasing demand for this raw material are prompting leading oil producers to seek alternative sources for extracting black gold, especially in offshore deposits. Perhaps this is also the reason for the possible war against Iran, in order to secure reserves there, as in Venezuela.

Metals and rare earths

When it comes to both, the West is completely dependent on China and Africa. The following graph shows how heavily the US depends on other countries when it comes to minerals:

Source: Elements

Particular attention should be paid to rare earths, a group of 17 nearly indistinguishable heavy metals with similar properties that are indispensable in a wide variety of technologies, high-performance magnets, electronics and industry as a whole, as well as natural graphite, which is found in lithium-ion batteries. When Trump imposed tariffs on China, Beijing responded with restrictions on rare earth exports, which only exacerbated the geopolitical situation surrounding these materials.

The data shows that Africa’s share of resources and production of important raw materials is as follows:

  • Platinum: 90% of global resources (mainly South Africa and Zimbabwe). Platinum is needed in catalytic converters and hydrogen technologies.
  • Cobalt: 70-75% of global production comes from the Democratic Republic of Congo. It is one of the key components of lithium-ion batteries.
  • Chromium: 85% of global reserves are of high quality. Required for the production of stainless steel.
  • Manganese: 80% of global resources (mainly South Africa). Key to the production of steel and batteries.
  • Tantalum: 60-70% of global resources (DRC, Rwanda). Indispensable in every smartphone and laptop (capacitors).
  • Gold: approx. 40% of global resources.

At the same time, Africa remains the least geologically explored continent on Earth. Canada spends more than US$2 billion annually on field exploration, while all African countries combined spend just over US$1 billion. This shows that if the African continent were not so politically unstable, many more deposits would likely be discovered there. In addition, more and more mines are being controlled by the Chinese (e.g. the cobalt mines in Congo), which poses a real threat to the West. 

The energy crisis is planned and desired Electricity prices skyrocket, but that’s our new better world after all

The Emissions Trading Systems (ETS) were introduced with the Kyoto Protocol and imposed on the EU and other countries by the infamous Al Gore. His idea that whoever produces more CO2 has to pay for it was seemingly clear at the beginning and many immediately embraced it, but the ETS quickly became financial instruments in the hands of large investors and thus began to serve as such for speculation. ETS became a commodity on the stock exchange, traded just like bitcoin or CFDs (Contract for Differences). The fact that in the end it is the end consumer who suffers is of no interest to high finance, the EU and US elites. Take Elon Musk, for example. Do you think he earns his money by selling electric cars? Not by any means. By 2021, he won’t have made a single cent of profit from car production. Until last year, his company made its best profits from trading CO2 certificates. In the last three years it was $3.3 billion. Another of Musk’s gold mines is trading in Bitcoin. As reported by Tagesschau at one time, Tesla had acquired Bitcoins for $1.5 billion from January to March 2021 and then resold them for the profit of $300 million. Everyone knows that Bitcoin production and transaction means enormous energy consumption. Never mind, the main thing is that it is a modern currency. Wow! Are electric cars not environmentally friendly at all because exorbitant amounts of precious and industrial metals are needed in their production? No problem. The main thing is to scrap old cars and buy new “emission-free” ones, according to the Green narrative. You have a Tesla? Wow! The ruble is rolling, one would like to say, although the ruble is just rolling towards China, as Russia has multiplied its exports to the Middle Kingdom since the sanctions were introduced, making nonsense of the West’s sanctions. Driving old diesel is yuck, but taking a tour into space with Spacex is mega cool. Isn’t that right, Greta? You’ve already circled the globe with the most environmentally unfriendly means of transport. The time is coming for the moon. Putin’s action against Ukraine is simply a good reason to speed up the green revolution in the West.  Continue reading →