Analysis: Winds of change shift Germany's economic power northwards

Crisis over Russian gas may mean electricity rationing
‘Silent power struggle’ between north and south
Southern industrial heartlands fret about power supply
Wind turbines, LNG terminals lift north’s economic appeal

BERLIN, Sept 12 (Reuters) – Germany’s wet and windswept north has long lacked the economic appeal of the industrial south but the green transition and an energy crisis sparked by war in Ukraine is shifting the balance.

When Northvolt sought a German site to build its first battery plant outside Sweden, it didn’t pick the southern industrial heartlands, instead it chose to be near the blustery North Sea coast where the wind power industry has taken off.

“Battery manufacturing is tremendously energy-intensive,” said Jesper Wigardt, Northvolt’s head of public affairs. “If you look at this part of Germany, it’s interesting in terms of energy, but also the type of energy in the grid.”