Stated energy transition goals Energy policy priorities Reduce GHG emissions by at least 55% Cover at least 80% of gross electricity Phase out coal-昀椀red power by 2030 compared to 1990 consumption by renewable sources generation by 2038 Achieve net-zero emissions by 2045 by 2030 Reduce primary energy Have at least 15 million electric cars consumption by 50% by 2050 in 2030 Install 1 million public charging points with non-discriminatory access by 2030 framework policy to enhance competition, security Country analysis of supply and sustainable energy production … Key progress on ETI Furthermore, this Act stipulates supplementary provisions for the access of electricity from renewable Germany is the fourth-largest economy in the sources to the grid as well as the construction of world and ranks 11 out of 120 countries on the ETI intelligent grids including electricity storage. In 2012 2023. Since 2014, Germany’s score on the ETI has the law was amended to speed up the expansion of increased by 6%, which shows both the robustness offshore wind farms. The major focus is on a system of its energy transition efforts and the challenges change towards a consistent and ef昀椀cient offshore large economies face in improving quickly. Within grid expansion by introducing a binding offshore grid 34 The government also passed system performance, Germany’s scores on the development plan”. secure and sustainable dimensions have improved, a law in 2020 that required phasing out all coal-昀椀red driven largely by supply security, an increase in share electricity generation no later than 2038; the timeline of renewable energy in the electricity mix and strong was recently brought forward to 2030. The net result reductions in the energy intensity of the economy. of these policies is re昀氀ected in the country’s high ETI Even though the carbon intensity of the overall scores on regulation and political commitment, as energy mix has declined over the years by 9%, it well as decarbonized and clean energy. remains relatively high, owing to persistent challenges What’s next? in decarbonizing hard-to-abate sectors, such as heating, transport and heavy industry. Germany Energy transition remains a process as Germany’s ranks 昀椀fth globally on transition readiness, which diversi昀椀cation of its energy mix is not purely focused provides an assessment of the enabling environment on sustainability and ef昀椀ciency gains but also on for energy transition, as it is one of the top three security. Over-reliance on imported gas from Russia countries on regulation and political commitment. and high energy prices were the main challenges Key imperatives and policies in place faced by Germany during the energy crisis. The Russia-Ukraine war prompted the government to The core elements of Germany’s energy transition institute emergency measures, such as building are improving energy ef昀椀ciency and expanding LNG regasi昀椀cation capacity and delaying coal renewables as quickly as possible. The government plant closures, which slowed down the transition has invested in the development of energy-ef昀椀cient momentum and locked in more emissions in the technologies and infrastructure, such as smart grids system. To ensure reduced dependence on Russian and electric vehicle charging stations. This has gas and accelerate the longer-term transition in resulted in Germany now producing over 40% of its Germany, the government has instituted numerous electricity from renewables,32 having set a goal of amendments to existing laws and funding 33 programmes that primarily focus on enhancing the reaching 80% by 2030. The country has introduced several policies aimed at increasing the share of nation’s renewable energy capabilities, particularly in renewables in the energy mix, phasing out nuclear onshore wind; increasing the volume of renewable power (with the last plant closing in April 2023) and power auctions; and speeding up grid planning reducing GHG emissions, resulting in the country and the growth of offshore wind connections to becoming a leader in the energy transition. The carry electricity generated from wind power in Energiewende (energy transition) was instituted nearly northern Germany to large industrial complexes in a decade ago as a plan for transforming the energy the south. Additional actions, such as “creating the system, making it more ef昀椀cient and supplied mainly legal and 昀椀nancial frameworks for carbon contracts by renewable energy. for difference, an instrument that supports industry in transitioning to climate-neutral production The German Renewable Energy Sources Act has 35 processes”, promoting research and development played a signi昀椀cant role in the transition by providing in green hydrogen to create modern future-oriented a legal framework and 昀椀nancial incentives for the climate protection technologies, and forming expansion of renewable energy sources. This, strategic partnerships, could help ensure an orderly together with the Energy Industry Act, forms the legal energy transition in Germany and provide lessons basis of the German energy industry and provides “a for other countries. Fostering Effective Energy Transition: 2023 Edition 36
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