Mercedes Benz has made a preliminary deal with an offshore wind power supplier to supply Mercedes with up to a quarter of its energy needs by 2027.
As energy prices worldwide have soared over the past year, automakers have scrambled to react to tame their dramatically increasing operating costs. One of the manufacturers’ most common reactions has been investing in renewable energy solutions. According to Reuters, in the case of Mercedes, they have chosen to invest in multiple wind power projects.
Due to the radical decrease in Russian oil imports, German automakers have had to get creative in managing their energy needs. Mercedes has two projects that they hope can help limit its reliance on fossil fuels. Foremost is a deal established with a wind energy producer based in the Baltic Sea that will supply 25% of the company’s energy needs by 2027, while the brand itself is also working on a wind farm in Germany that will produce up to 15% of the company’s energy by 2025.
While neither of the two projects is currently operational, they aid in Mercedes’ overarching goal. By 2030, Mercedes aims to have 70% of its energy from renewable sources. But the company faces another problem. Even once complete, these two projects will not produce nearly enough to meet their goal.
This is where the German government is stepping in to help. The German government backs a significant part of renewables currently being constructed in Germany per the recently passed “German Renewable Energy Sources Act of 2023” (EEG 2023). This recently passed law follows a long string of similarly named Acts seeking to expand the European country’s renewables sector while also phasing out their reliance on fossil fuel sources.
The EEG 2023 sets forth several critical changes and continues Germany’s dedication to wind and solar power generation. First, the law sets the goal of 80% of German energy being produced by renewable sources by 2030, but this set of funding opportunities will also be the last, following the phase-out of coal power plants in the country. Generally, the law continues to provide funding for wind and solar, with hydroelectric power now also receiving support.
Mercedes and other German automakers will be a massive part of the switch to cleaner energy in the near future. Together, the most prominent German automakers, Volkswagen, BMW, and Mercedes, use a substantial amount of power generated. Mercedes, for one, is looking to reduce their impact as they continue.
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Keyword: Mercedes invests in renewable energy projects in Germany