Before this morning, I had never heard of Germany's Energiewende, despite the fact that the term has apparently been around since the 1970s.
That all changed after reading Today in Energy issued today by the U.S. Energy Information Administration ("EIA") entitled "Germany's renewables electricity generation grows in 2015, but coal still dominant."
So what is Germany's Energiewende?
Energiewende is Germany's energy transition policy that focuses on renewable energy and sustainable development. According to the EIA report, "Energiewende goals include eliminating nonrenewable energy sources from Germany's energy portfolio, phasing out nuclear power generation, reducing dependence on energy imports, and lowering carbon emissions."
In 2015, 44% of Germany's electricity production was reportedly generated from coal, 11% from other fossil fuels, and 15% from nuclear energy. Official goals include a gradual phase-out of nuclear power by 2022.
According to the EIA report: "Electricity generated from renewable sources has tripled in Germany over the past 10 years. Based on Energiewende goals, the share of power generated from renewable sources is set to increase to 40% to 45% by 2025 and to more than 80% by 2050. Most of Germany's expected growth in renewable electricity comes from solar photovoltaics (PV) and wind, which currently provide 20% of Germany's total electricity. Hydropower and other renewables such as biomass and waste provided 11% of Germany's overall electricity supply in 2015, but these shares are not expected to grow significantly."
Why is this important?
- Energy is a global issue, as is renewable energy growth. It should also be noted that the EIA report found that as of 2015, 44% of Germany's electricity production was generated from coal.
- The electricity grid problems in Germany are said to "reflect a larger, continent-wide problem that has been elevated to the European Commission in Brussels, where policy makers advised that an integrated, renewables-focused electricity market should be a political priority for the European Union."
- Germany is identifying issues, and is assessing the pros and cons, in its attempt to achieve its energy goals.
For example, according to the EIA report, the German government has supported renewable electricity growth through a policy known as a "feed-in tariff" – a fixed, above-market price for every kilowatthour of energy generated by solar PV or wind and delivered to the grid. "By law, these renewable sources havepriorityover traditional generation, meaning that other forms of generation must be curtailed to accommodate fluctuations in renewable electricity generation." In fact, according to the German Energiewende website, "[i]n 2001, the European Court of Justice ruled that feed-in tariffs do not constitute "State aid" and are therefore not illegal subsidies, thereby paving the way for the boom of renewables."
What is the result? The EIA report provides that over the past five years, these policies have helped to double the amount of wind generation.
- Downsides have also been identified and are being addressed.
- High residential electricity prices...According to the EIA report, wholesale electricity prices in Germany have been declining, but residential retail prices have risen and are expectedto continue to increase because of higher taxes and fees charged to consumers. Along with Denmark,Germanyreportedly has among the highest residential electricity prices in Europe.
- Lack of infrastructure....According to the EIA report, Germany currently lacks the infrastructure to send surplus electricity from the north to the more populous areas in the south. Germany has reportedly identifiedthe need for more than 3,800 kilometers of new transmission lines to meet increasing growth in both electricity demand and supply, but these infrastructure proposals have been opposed by municipalities and citizens.
- Power surges....The EIA report mentions that large volumes of surplus power often create power surges. Poland and the Czech Republic have reportedly invested in technology to avoid blackouts from power surges that originate in Germany on particularly windy days.
And that is the Energiewende in a nutshell.
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