Energy Policy Review: Germany 2020
Overview
The International Energy Agency (IEA) conducts in-depth peer reviews of its member countries' energy policies, focusing on enhancing the reliability, affordability, and sustainability of energy. Germany, a key member of the IEA, has been implementing the Energiewende (energy transition) since 2010, aiming to transform its energy system to one primarily driven by renewable energy sources.
Emissions Targets
Despite progress in increasing the share of renewable energy in electricity generation, Germany struggles to meet its near-term emissions reduction targets due to uneven progress across sectors, particularly in transport and heating.
Electricity Transition
The Energiewende has been effective in increasing the share of renewable energy in electricity generation. However, the government must refocus efforts to achieve stronger emissions reductions in non-electricity sectors.
Beyond Electricity
Key challenges remain in transport and heating, requiring further policy actions to decarbonize these sectors.
Energy Security
Germany maintains a high degree of oil, natural gas, and electricity supply security. With increased reliance on natural gas due to the nuclear and coal phase-outs, the country needs to diversify its gas supply options, including through the import of liquefied natural gas.
Key Recommendations
- Implement a carbon price in the transport and heating sectors.
- Enhance energy efficiency policies.
- Increase public spending on energy research, development, and demonstration (RD&D).
Energy System Transformation
- Energy and Climate Change: Reduce energy-related CO2 emissions and adapt to climate change.
- Energy Efficiency: Improve energy consumption across sectors.
- Renewable Energy: Expand the deployment of renewable energy sources and address sector coupling challenges.
Renewable Energy
- Supply and Demand: Increase the supply of renewable energy while addressing demand challenges.
- Institutions: Strengthen institutions and policies supporting renewable energy.
- Policies and Measures: Implement effective policies and measures to promote renewable energy adoption.
Energy Technology Research, Development, and Demonstration
- Public Spending: Increase investment in energy RD&D to support innovation and technological advancements.
Overall, the report highlights the need for comprehensive and targeted policy measures to achieve Germany's ambitious energy transition goals.
