Since the IEA last reviewed Germany’s energy policies in 2007, the country has taken
two fundamental policy decisions that will guide its energy policy in coming decades.
In September 2010, the federal government adopted the Energy Concept, a comprehensive
new strategy for a long-term integrated energy pathway to 2050. Following the Fukushima
Daiichi nuclear accident in March 2011, Germany decided to accelerate the phase-out
of nuclear power by 2022 starting with the immediate closure of the eight oldest plants.
This decision resulted in the adoption of a new suite of policy measures, determined
renewable energy as the cornerstone of future energy supply, a set of policy instruments
commonly known as the Energiewende.In order to achieve the ambitious energy transformation
set out in the Energiewende, by 2030 half of all electricity supply will come from
renewable energy sources; Germany must continue to develop cost-effective market-based
approaches which will support the forecast growth of variable renewable generation.
Furthermore, the costs and benefits need to be allocated in a fair and transparent
way among all market participants, especially households.Renewable energy capacity
must expand alongside the timely development of the transmission and distribution
networks. In addition, a stable regulatory system is necessary to ensure long-term
finance to network operators. Furthermore, close monitoring of Germany’s ability to
meet electricity demand at peak times should continue in the medium term.Energy policy
decisions in Germany inevitably have an impact beyond the country’s borders and must
be taken within the context of a broader European energy policy framework and in close
consultation with its neighbours.This review analyses the energy-policy challenges
facing Germany and provides recommendations for further policy improvements. It is
intended to help guide the country towards a more secure and sustainable energy future.