Three years after explosions crippled the Nord Stream gas pipelines in the Baltic Sea, Germany continues to grapple with the economic aftershocks of losing its largest energy artery. While investigators still seek answers about the sabotage, the consequences for Europe's industrial powerhouse are undeniable.
The twin Nord Stream 1 pipelines once delivered 55 billion cubic meters of Russian gas annually – enough to power factories and heat homes across Germany. Its unfinished sibling, Nord Stream 2, promised to double that capacity before geopolitical tensions froze the project in 2022. Today, both pipelines lie dormant beneath the waves.
"Germany's energy market has adapted, but not without pain," said Claudia Kemfert of DIW Berlin, noting renewable energy now accounts for 52% of electricity production. Households and manufacturers, however, face energy costs four times higher than 2021 levels according to Reuters data, testing the competitiveness of chemical and metal industries.
The transition has accelerated green energy investments, with wind and solar capacity growing 28% since 2021. Yet analysts warn the price surge could drive long-term industrial decline, particularly in energy-intensive sectors that once fueled Germany's export machine.
As LNG terminals rise along the North Sea coast and hydrogen projects multiply, the Nord Stream saga underscores Asia's growing role in global energy dynamics. Germany's pivot offers lessons for economies worldwide navigating the precarious balance between energy security and sustainability.
