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A Reporter’s Guide Context. to the * Contacts. Access. 3rd edition 2016

# #a new power market design # / citizens‘ energy * German #phasing out nuclear energy # industry competitiveness transition # utilities fighting for survival # grid expansion Clean Energy Wire | CLEW 2016 Our team of journalists and media professionals in is available to support journalists in their work. At the same time, strong fact-based and critical jour- starting point for their work by highlighting the main A note from CLEW nalism is essential to inform the international political storylines of the , providing lists debate about how to decarbonise the global economy. of experts and links to key readings. Our website The energy transition is turning many parts of Ger- Which is why Clean Energy Wire CLEW has set cleanenergywire.org offers plenty more in-depth man society upside down. The landmark agreement out to support journalists in their work. Fully funded information and contacts. Our daily news digest and at the global climate summit in Paris has further by two non-profit foundations – Stiftung Mercator our Twitter feed @cleanenergywire keep readers increased interest in this generational project, which and the European Climate Foundation – we enjoy in the loop about Energiewende debates and provides a wealth of exciting and important stories. full independence from any business or political events. We also organise workshops for journalists, Yet researching this massive undertaking in a interests. We share our funders’ commitment to providing a first-hand view of the transformation. foreign country with a tricky language is a difficult work towards the decarbonisation of the economy But most importantly, we offer support with specific job, even for the most seasoned reporter. This is in order to limit man-made climate change. questions and put you in touch with experts – so compounded by the immense complexity of the The CLEW “Reporter’s Guide to the Energie- don’t hesitate to ask CLEW. technology and economics behind . wende”, now in its third edition, gives journalists a Sven Egenter and the Clean Energy Wire team

Sven Egenter Eva Freundorfer Carel Carlowitz Mohn Kerstine Appunn Sören Amelang Sandra Suck Editor in Chief Programme Officer Dir. Media Programmes Correspondent Correspondent Assistant

1973-1975 1979/1980 1986 1991 1997/2005

? Enter the Greens Chernobyl disaster Kick-starting renew- Kyoto Protocol No thanks!” Birth of ’s Green solid­if­ies Germans’ ables Germany, the world’s Clean Energy Wire | CLEW Germany’s anti-nu- Party is founded, with resist­ance to nuclear New legislation intro- sixth largest emitter clear movement as an exit from nuclear energy duces feed-in tariffs at the time, has to Rosenstraße 2 protests force plans for energy and a renew- for renewable power reduce CO emissions 2 a nuclear power plant able future as key Climate change under the agreement 10178 Berlin, Germany in to be aborted demands enters the discourse - a magazine story leads [email protected] Activists first use the parliament to establish +492 30 2844 90 200 term “Energiewende” an advisory council Energiewende

What is the Energiewende? And where did it come from?

he energy transformation, in Germany However, since the first introduction of Already, there are winners and losers: Twidely known as the “Energie­wende” feed-in tariffs for renewable energies Big utilities’ traditional business models is the country’s planned transition to in the 1990s, the project has started to have been hit hard while consumers and a low-carbon, nuclear-free economy. So radically reshape the energy system some businesses are concerned about far there have been two key elements to as a whole. As the traditional model of higher electricity costs. The coal industry the process: centralised power generation is being first benefitted from the nuclear phase- replaced by diverse sources of energy out, but its future is now uncertain as the that fluctuate with the weather, not government steps up its efforts to cut CO The phase-out of nuclear power 2 only the grid and the power market are emissions. At the same time, entirely new (by 2022) effected. While so far mainly focused on industries have sprung up. The development of renewable electricity, the Energiewende is now also energies in the power sector expected to transform other sectors like industry, housing, construction, heating and transport. For specific energy transi- tion targets see pages 4- 5.

2000 2001 2007 2010 2011 2014 2015 2016

Renewable Energy Act Nuclear phase-out #1 EU targets Extending nuclear Nuclear phase-out #2 New EEG & climate Slow progress EEG reform The EEG stipulates Red-Green govern- EU sets 2020 climate The nuclear consensus Merkel government action The Energiewende Switch from feed-in fixed feed-in tariffs ment reaches “nuclear targets: 20% renew­ is reversed by a con- formulates new Govt. lowers feed-in monitoring report tariffs to auctions for and grid priority for consensus” with ables share, 20% GHG servative government nuclear-phase out by tariffs, starts PV auc- shows climate renewables renewables utilities to phase out reduction, 20% more 2022 with large parlia- tions and introduces targets are “in serious nuclear by 2022 efficiency Energy concept mentary majority after plan to achieve 2020 danger” Spin-offs Govt. sets out renew- Fukushima disaster climate targets Utilities E.ON and ables and climate RWE are set to split to targets for 2020 and separate renewables 2050 from fossil operations 3 Clean Energy Wire | CLEW 2016

#Energiewende – Targets

he overall objective of the Ener- to an annual monitoring process. The argue that the Paris Climate Agree- Tgiewende is to reduce Germany’s latest monitoring report was published ment should see the EU enhance its emissions and phase in November 2015. targets so that they are in line out nuclear power, making the economy with a 1.5° to 2°C warming limit. more environmentally sustainable. When it became clear in 2013/2014 that

the CO2 reduction goal for 2020 would On a national level, Germany aims likely be missed, the government opted to cut by to increase its efforts rather than adjust 40 percent by 2020, and by up to 95 per- the targets. In 2016, the government cent by 2050. The share of renewables aims to adopt a Climate Action Plan in final energy consumption is to rise to 2050 that describes the path the German 60 percent (from 12.6 percent in 2015) economy must take to achieve the ener- by 2050. Renewables are to cover at gy transition’s long-term targets. least 80 percent of the country’s gross power consumption by the middle of Germany’s greenhouse gas reduction the century. goal is more ambitious than that of the , which aims to Germany’s climate targets were put on achieve a 20 percent cut by 2020 and a paper in 2007 and 2010 and have been 40 percent cut by 2030, compared to upheld by all governments since. They 1990 levels. While some industry rep- were reaffirmed in the 2014 energy tran- resentatives say Germany should lower sition progress report and are subject its objectives to European levels, others

4 Energy transition targets

Quantitative targets of the energy transition

Reduce -40 % greenhouse gas -55 % %

% -70 %

% %

emissions % -80 - 95 % 60 45 100 72.3 30

Reduce Increase electricity % share %

%

% % consumption 27.4 % 35 % 50 % 65 % 80 % of renewables 100 90 95.4 75

-20 % Reduce Increase energy -50 % % share %

%

% % consumption 30 % 45 % 60 % of renewables 100 80 91.3 13.5% 18 % 50

Reduce heat consumtion %

%

% in building 100 80 87.6 Reduce final energy %

% consumption % %

in transport 101.7 90 60 100

6 m Increase number of e-cars 1 m 0.02 m 1990 2005 2008 2014 2020 2030 2040 2050 Sources: BMWi, 2015; UBA, 2016.

5 Clean Energy Wire | CLEW 2016

#Energiewende – Key Figures

3.6 % Renewables’ share in gross German power generation in 1990 30 % Renewables’ share in gross German power 45.1 m Passenger cars 25,502 Pure electric 46.6 % Renewable 80 % Fall in share generation in 2015 registered in Germany cars registered = 0.05% power capacity owned by of the two biggest utilities (01/2016) (01/2016) citizens (2012) E.ON and RWE over past eight years 12 minutes and 28 seconds: Average power outage in 2014 Compare (2013) 93 % of Germans € 22 bn Renewable 355,400 People 20,767 People Denmark: 11 mins believe use and roll-out of surcharge paid by power employed in the employed in the brown France: 68 mins renewables is important consumers in 2015. renewables sector (2014) coal industry (07/2015) UK: 54 mins (2015) Poland: 254 mins

20.6 28.7 ct/kWh 38.6 % of 57 % of natural gas 12.6 % Renewables’ 32.5 % Renewables’ Average household power imports to Germany came imports to Germany came share in primary energy share in gross power price 2007 and 2016 – from (2014) from Norway (33 %) and the consumption in 2015 consumption in 2015 thereof­ 6.35 ct/kWh re­new­­­ Netherlands (24 %) (2014) (up from 1.3 % in 1990) (up from 3.2 % in 1991) able surcharge in 2016

6.6 3.2 ct/kWh 902 m tonnes 27.7 % Fall in green- € 52.3 bn Energy-related 12.4 % Drop in energy Average wholesale Greenhouse gas house gas emissions investment in existing demand for heating power price (base-load) emissions in 2014 1990 - 2014 buildings in 2014 2008 - 2014 in 2008 and 2015

6 Energy transition data

27.7 % greenhouse gas reduction Emission trends for Germany since 1990 since 1990

1,248 1200 78 70 68

1000 67 67 66 67 941 945 66 131 922 926 66

67 906

133 902 67 64 64 67 63 125 63 62 135 130 61 130 64 143 96 139 65 62 133 63 64 132 93 123 119 121 122 66 114 63 89 114 800 93

94 749 108 99 97 96 101 95 91 107 96 82 85 76 74 77 78 74 73 100 77 75 112 76 73 61 164 61 62 62 61 167 65 173

600 178 174

178 562 178 154 170 178 177 182 179 170 157 183 161 154 187 159 155 156 154 161

153 2020 reduction 187 165 target: -40% 155 144 142 119 118 128 136 120 146 115 127 123 122 140 121 122 130 136 125 126 134

400 120 109 equivalents in million tonnes equivalents 2 2030 reduction

CO target: -55% 427

200 413 388 386 383 391 374 379 381 368 367 380 377 370 372 364 367 357 356 335 356 354 346 344 344

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy Industries Manufacturing Industries and Construction Transport Fugitive Emissions from Fuels Industry Households Agriculture Land Use, Land Use Change and Forestry* Waste Other

*Without CO2 from LULUCF Source: UBA, 2016.

7 Clean Energy Wire | CLEW 2016 gross power production Development of gross electricity production 1990-2015 in terawatt-hours (TWh) Mineral Oil 700 1% Natural Others 600 Gas Onshore Wind 4% 12%

152 9% 194 Hard Coal 500 163 18% 68

400 61 57 Offshore Wind Renewable 1% TWh 127

119 Energies 3% Hydro Power 300 11892 Nuclear 14% 30% 97 % shares in 2015 % shares 200 97 7% 100 Lignite 161 156 155 24% 0 6% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1% Solid Waste Lignite Nuclear Hard Coal Natural Gas Mineral Oil Renewables Others Source: AGEB, 2015.

Germany’s power export balance 1990-2015 in terawatt-hours Share of energy sources in primary energy consumption

Others 246 PJ 1990 1991 1992 1993 1994 1995 1996 1997 1998 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2% PJ: Petajoule Import 0 Renewable Energies 1679 PJ Mineral Oil -10 Nuclear 12% 4511 PJ 998 PJ 7% 33% TWh -20 Lignite 1587 PJ 12% -30 Hard Coal 1691 PJ Natural Gas -40 13% 2804 PJ Export 21% -50 Source: AGEB, 2015. Source: AGEB, 2015.

8 power export balance Calendar

#Energiewende – Dates 2016

11 March: Fifth anniversary of the Fuku- 11 - 13 April: Berlin Energy Days confer- 2 June: Frankfurter Allgemeine Zeitung shima nuclear disaster. ence, in BERLIN. Summit, in BERLIN.

17 - 18 March: The foreign ministry’s 20 April: RWE annual shareholders’ 7 - 9 June: German Association of annual Berlin Energy Transition Dia- meeting. Energy and Water Industries Congress 2016 – conference on energy markets logue 2016 – Towards a global Energie- 25 – 29 April: International Energy and energy policy, in BERLIN. wende. Speakers include foreign minister Trade Fair with partner country USA, Frank-Walter Steinmeier, economy in HANNOVER. 12 - 13 September: Handelsblatt Re- minister , and IRENA head 26 April: 30th anniversary of the Cher- newable Energy Conference, in BERLIN. Adnan Z. Amin, in BERLIN. nobyl nuclear disaster. 27 - 30 September: WindEnergy Ham- 21 March: EnBW presents full year 12 - 13 May: RWE and EnBW report first burg, global on- and offshore wind trade report 2015. quarter results. fair, in HAMBURG. Spring 2016: Energy ministry expects Summer 2016: German parliament legislative process for new power market and Federal Assembly to approve law to be completed. reform of Renewable Energy Act. Climate Action Plan 2050 to be passed by cabinet. The plan may in- clude details of a coal exit strategy. Calendar power export balance 9 Clean Energy Wire | CLEW 2016

#Energiewende – Contacts

… for official statements Agora Energiewende, focusing on German Association of Local Utilities (VKU) dialogue with energy policymakers in the power Representing the many local and regional utilities Federal Ministry for Economic Affairs sector. +49 30 284 4901 10, christoph.podewils@ag- (Stadtwerke) in Germany. +49 30 58580-226, and Energy (BMWi), +49 30 18 615 6121, ora-energiewende.de, www.agora-energiewende.de [email protected], www.vku.de [email protected], www.bmwi.de/en German Institute for Economic Research (DIW) Federation of German Industries (BDI) Federal Ministry for the Environment, DIW’s energy, transportation and environment, +49 30 2028-1565, [email protected], www.bdi.eu Nature Conservation, Building and and climate policy departments study the econom- German Renewable Energy Federation (BEE) Nuclear Safety (BMUB), +49 30 18 305 2010, ics and politics of climate change and energy. +49 30 275 81 70-16, [email protected], [email protected], www.bmub.bund.de/en +49 30 89789 249, [email protected], www.bee-ev.de Federal Ministry of Transport and Digital www.diw.de (BMVI), +49 30 18300-7200, Fraunhofer ISE, Solar energy research institute and [email protected], www.bmvi.de/en publisher of electricity production data. Also see their data and graphs at www.energy-charts.de, +49 761 4588-5147, www.ise.fraunhofer.de … for latest data and research German Renewable Energies Agency (AEE) AG Energiebilanzen, Energy market research group. +49 30 200 535 52, a.knebel@unendlich-viel- +49 30 8913987, [email protected], energie.de, www.unendlich-viel-energie.de www.ag-energiebilanzen.de the experts Institute for Applied Ecology (Öko-Institut) Sustainable development consultancy and research … for industry comment institute. +49 761 45295 224, [email protected], German Association of Energy and Water Indus- … for a list of over 200 experts and www.oeko.de/en tries (BDEW), Germany’s largest institu­tions with insights into the association. +49 30 300 199 1163, [email protected], Energie­wende see: www.bdew.de www.cleanenergywire.org/experts 10 Contacts & Sources

#Energiewende – Reading in English

cleanenergywire.org Our website pro- German Institute for Economic Research vides in-depth analysis, factsheets, news (2015) Deep Decarbonisation in Germany. articles, a daily press digest, an expert Macro analysis of the Economic and Polit- database, and more. ical Challenges of the Energiewende. National Geographic (2015) Germany Agora Energiewende (2015) Understand- Schmid et al. (2016) Putting an energy Could Be a Model for How We’ll Get Pow- ing the Energiewende; (2013) 12 Insights system transformation into practice: The er in the Future. on Germany’s Energiewende. case of the German Energiewende. UBA (2015) National Trend Tables for the Good introductory readings on the energy Federal Ministry for the Environment German Atmospheric Emissions Reporting. transition in the power sector. (BMUB) (2015) Climate Action in Figures PwC (2015) Energie­wende outlook: The Federal Ministry for Economic Affairs Facts, trends and incentives for German Transportation sector. and Energy (BMWi) website offers a wide climate policy. range of publications in English, including Federal Environment Agency (UBA) Centre on Regulation in Europe (2015) the newsletter “Energiewende direkt”. (2015) Data on the Environment. The energy transition in Europe: ini- tial lessons from Germany, the UK and BMWi (2015) Fourth “Energy Transition” AG Energiebilanzen (2015) Evaluation France. monitoring report. Overview of the pro- tables on the energy balance 1990 to 2014. gress and challenges of reforms in the energytransition.de - A website/blog, fields of energy efficiency, renewable German Foreign Office (2015) Who is funded by the Heinrich Böll Foundation, energy, power plants, electricity grids, Who of the Energiewende in Germany. explaining what the energy transition is, greenhouse gas emissions and energy Brochure of contacts in politics, industry how it works, and what challenges www.cleanenergywire.org/experts . and society. lie ahead. 11 Clean Energy Wire | CLEW 2016

#Climatexxx and CO2 #Fossil fuels Climate targets force Germany to tackle coal

enewable energy sources have ex- tions soared to levels above 1990. But panded rapidly since the introduc- power usage and CO emissions eased R 2 tion of the Renewable Energy Act in in 2014, leading some analysts to pre- 2000, but German carbon emissions dict better years ahead– while others have not always fallen in step. After pointed out that much of the reduction 2009,xxxxxxxx emissions even rose as power was due to warm weather. However, generationx from coal-fired power sta- estimates for 2015 predict a slight rise ©[hansenn] Fotolia.

12 Directory #Climate and CO2 #Fossil fuels

Contacts WWF Germany Reading +49 030 311777-422, [email protected] Patrick Graichen, Agora Energiewende Agora Energiewende (2016) Eleven Principles for a +49 30 2844901-10, Germanwatch Consensus on Coal [email protected] +49 0228 60492-23, [email protected] Agora Energiewende (2016) The energy transition Claudia Kemfert, German Institute for Economic Mercator Research Institute on Global Commons in the power sector: State of affairs 2015 Research (DIW) and Climate Change (MCC) +49 30 89789-663, [email protected] +49 30 3385537-201, [email protected] Agora Energiewende (2014) The German Energie- wende and its climate paradox Fraunhofer ISI +49 721 6809 100, [email protected] Fraunhofer ISE (2015) Energy charts The Potsdam Institute for Climate Impact DIW (2014) Coal power endangers climate targets: Research (PIK) Calls for urgent action +49 331 288 25 07, [email protected] AG Energiebilanzen (2015) Energy Consumption Greenpeace Germany Increases Slightly in 2015 +49 40 306 183 46, [email protected]

Camilla Bausch, Ecologic Institute CLEW Factsheets [on cleanenergywire.org] +49 30 86880-0, [email protected] Germany’s greenhouse gas emissions and climate targets Details of new Climate Action Programme Coal in Germany in emissions again and a monitoring the cause, the call for a planned coal Understanding the European Union’s Emissions Trading System report on the energy transition showed exit in the next 25 years is getting that Germany is still lagging behind louder. This year, the environment many of its targets. Environmentalists ministry will present a Climate Action warn that coal-fired power plants still Plan 2050 and the economy and en- threaten Germany’s emissions tar- ergy minister has backed plans for a gets. With the backing round-table on coal.

13 Clean Energy Wire | CLEW 2016

#Energiewende #Society Energiewende – the first four decades

or many observers, the energy tran- re-instated plans to exit nuclear power. Fsition in Germany began with Chan- A long process deeply rooted in Ger- cellor ’s decision to phase man history and society led to policies out nuclear power, following the acci- that triggered a strong increase in dent at the nuclear plant in Fukushima, renewable energy sources and are now Japan. But the societal project started at the heart of a move to a low-car- decades before the Merkel government bon economy. The Energiewende – a ©[nullplus] iStock.

14 Directory #Energiewende #Society

Contacts CLEW Factsheets [on cleanenergywire.org] Institute for Applied Ecology (Öko-Institut) Milestones of the German Energiewende +49 761 45295 224, [email protected] The history behind Germany’s nuclear phase-out Heinrich Böll Foundation “The renewable energy act +49 30 285 34 217, [email protected] Green Party sparked a real grassroots +49 30 284 42 130, [email protected] Friends of the Earth Germany (BUND) citizens’ movement. +49 30 27586 425, [email protected] Greenpeace Germany Germans turned the +49 40 306 183 46, [email protected] Nina Scheer, Social Democrats MP Energiewende into their +49 30 227 76539, nina.scheer@.de

own project.” Reading Nina Scheer, Social Democrats MP energytransition.de:Timeline Energiewende Paul Hockenos (2008) Joschka Fischer and the Mak- ing of the Berlin Republic: An Alternative History of Postwar Germany full-scale transformation of society and the economy – arose out of enduring grassroots movements, evidence-based discourse, concern about climate change, and key technological advances, as well as hands-on experience garnered along the way in Germany and elsewhere.

15 Clean Energy Wire | CLEW 2016

#Electricity market The country of the Energiewende strengthens competition and flexibility

he Energiewende involves tough and the wind doesn’t blow? Fluctuat- Tchoices for politicians: How will ing energy production challenges the Germany organise the market around entire power grid. The German govern- the ever-increasing share of renew- ment is trying to solve these problems able energy? What happens to energy with a complete overhaul of the power security when the sun doesn’t shine market and has opted to put its trust ©[mhp] Fotolia.

16 Directory #Electricity market

Contacts CLEW Article / Factsheets [on cleanenergywire.org] Felix Christian Matthes, Öko-Institut “We don’t believe that +49 30 405085 380, [email protected] Germany’s new power market design , German Association of Local Europe’s largest electricity market set to split Utilities (VKU) there will be incentives +49 30 58580 202, [email protected] German draft power market law sticks to lignite reserve for investors to build German Association of Energy and Water Indus- tries (BDEW) Capacity markets around the world new, flexible power +49 30 300 199 1160, [email protected] Yvonne Stock, Energy Brainpool plants that will be +49 30 7676 5423, [email protected] needed in Germany to Hamburg Institute of International Economics (HWWI) accompany the expansion +49 40 34 05 76 115, [email protected] of renew­able energy.” Reading European Commission (2016) The economic impact Frank Brachvogel, BDEW of enforcement of competition policies on the func- tioning of EU energy markets BMWi (2015) An electricity market for Germany’s energy transition - white paper of the Federal Minis- try for Economic Affairs and Energy in the free market. These plans will BDEW (2013) Position paper: Design of a decentral- have long-lasting implications. Most ised capacity market experts agree there will be little or no investment in fossil power plants in Öko-Institut/WWF (2012) Focused capacity markets the future, but opinions diverge over Agora Energiewende (2015) Report on the German whether this really matters. power system

17 Clean Energy Wire | CLEW 2016

#COP21 Paris Climate Agreement – what it means for the German energy transition

opes for the Paris Climate Sum- protection, keep global warming below Hmit (COP21) from 30 November 2°C, and pursue “efforts to limit the to 11 December 2015 were high. Most temperature increase to 1.5°C”. observers – including the German Some industry leaders criticise government – agree that the conference the absence of a binding mechanism exceeded all reasonable expectations. and say Germany shouldn’t push ahead It reached an agreement that obliges with climate protection and an en- all nations to participate in climate ergy transition while other countries ©[Shutter81] Fotolia.

18 Directory # COP21

Contacts Wuppertal Institute for Climate, Environment and Energy Ottmar Edenhofer, Mercator Research Institute on +49 202 2492 180, [email protected] Global Commons and Climate Change (MCC) +49 30 33 85 537 -201, [email protected] Jan Kowalzig, Oxfam Germany +49 30 45 30 69 712, [email protected] Federal Ministry for the Environment, Nature Con- servation, Building and Nuclear Safety (BMUB) +49 30 18 305 2010, [email protected] Reading Christoph Bals, Germanwatch Climate Action Plan 2050 (2016) Website with latest “World expects Germany to +49 0228 60492-23, [email protected] documents and process updates Sabine Minninger, Brot für die Welt European Council (2015) EU position for the UN cli- lead way with Energiewende”+49 30 65211 1817, sabine.minninger@brot-fuer- mate change conference in Paris: Council conclusions die-welt.de Jennifer Morgan, Executive Director United Nations Global Compact(2015) Special The Potsdam Institute for Climate Impact Edition: A Call to Climate Action Research (PIK) Greenpeace International Greenpeace (2015) Effects of a partial coal exit (in +49 331 288 25 07, [email protected] German) Reimund Schwarze, Helmholtz Centre for Environ- mental Research +49 341 235 1607, [email protected] CLEW Article / Factsheets [on cleanenergywire.org] Paris deal fuels German coal exit debate, stirs indus- aren’t pursuing such ambitious targets. demands that Germany urgently phase try concerns Yet there is huge pressure on “climate out coal. The environment ministry Germans celebrate climate deal, turn to task ahead chancellor” Angela Merkel to make the has been tasked with writing a Climate Paris climate deal – does Germany get what it most of the backing her policies received Action Plan 2050 that describes a path- hoped for? in Paris. way to decarbonise the different sectors Just days after the conference conclud- of the economy by the middle of the The making of “Climate Chancellor” Angela Merkel ed, commentators and climate activists century. The plan is due to be agreed by Controversial climate summit issues – positions in argued the Paris Agreement vindicated government in summer 2016. Germany

19 Clean Energy Wire | CLEW 2016

#Nuclear phase-out Managing the nuclear legacy – a project into the next century

he question is no longer whether recently one of the country’s primary T Germany’s future will be nucle- sources of power are proving an im- ar-free – or even when, since the gov- mense challenge. Legal hurdles, decom- ernment is committed to completing missioning technicalities, and above the phase-out by 2022. But the logistics all, the questions of where to store the of pulling the plug on what was until radioactive waste and who will pay for it ©[Thomas Lehmann] iStock.

20 Directory #Nuclear phase-out

„In 2050, when the Contacts power is fundamentally sensible from an economic perspective Wolfgang Irrek, Ruhr West University of final repository is ready Applied Sciences Federal Office for Radiation Protection (BfS) +49 208 88254-838, [email protected] Brunnengräber et. al. (2015) Nuclear waste govern- I will be 98 years old, Energiewerke Nord GmbH (EWN) ance - an international comparison +49 38354 4-8030, [email protected] BBH (2014) Financial provisions in the nuclear sec- so I am not sure Federal Office for Radiation Protection (BfS) tor – Possible risks of the status quo und options for +49 30 18 333-11 30, [email protected] reform (in German) I will live to see it Becker Bückner Held firm (BBH) BMWi / Warth & Klein Grant Thornton (2015) Nu- happen, but I +49 30 611 28 40-90, [email protected] clear clean-up provisions evaluation (in German) certainly Green Budget Germany (FÖS) Wuppertal Institute for Climate, Environment and +49 30 7623991-41, [email protected] Energy (2007) Comparison of Different Decommis- feel that it is my sioning Fund Methodologies for Nuclear Installa- Federal Ministry for the Environment, Nature Con- tions servation, Building and Nuclear Safety (BMUB) responsibility to organise +49 30 18 305 2010, [email protected] CLEW Factsheets [on cleanenergywire.org] this now.“ Forschungszentrum Jülich +49 2461 61-2388, [email protected] The history behind Germany’s nuclear phase-out Barbara Hendricks, German Institute for Economic Research (DIW) What to do with the nuclear waste – the storage Environment Minister +49 30 89789 249, [email protected] question Nuclear clean-up costs Reading all, are the main issues at hand. In 2016, Securing utility payments for the nuclear clean-up German Institute for Economic Research (2015) Germany’s nuclear­ phase-out marks two Legal disputes over the nuclear phase-out German nuclear phase-out enters the next stage: important anniversaries – it will be 30 electricity supply remains secure years since the fatal nuclear meltdown in Chernobyl and five years since the Helmholtz Centre for Environmental Research (2015) Germany’s decision to phase out nuclear catastrophe in Fukushima.

21 Clean Energy Wire | CLEW 2016

#Cost&Prices German industry and its competitive edge in times of the Energiewende

ndustrial competitiveness in times of companies are actually benefitting Ian energy transition – few issues have from the lowest wholesale power prices been watched as closely. So far, German in Europe, as they are exempt from manufacturers have kept their com- levies that fund the Energiewende. But petitive edge, backed by strong exports, the topic of competitiveness is likely to despite concerns about rising electricity persist as the Energiewende progress- costs. Some of the most energy-thirsty es. Many business leaders warn the ©[PhotoSG] Fotolia.

22 Directory #Cost&Prices

Contacts IHS (2014) A more competitive Energiewende: Securing Germany’s global competitiveness in a new Institute of Economic Structures Research (GWS) energy world +49 541 40933-0, [email protected] Agora Energiewende (2014) Comparing electricity Institute for Economic Research (Ifo) prices for industry +49 89 922 412 18, [email protected] Frankfurt School UNEP (2015) Global trends in “Perceptions Federation of German Industries (BDI) renewable energy investment 2015 ] +49 30 2028 1420, [email protected] [of the Energiewende Uwe Leprich, Institute for Future Energy Systems CLEW Factsheets [on cleanenergywire.org] +49 681 9762 844, [email protected] Industrial power prices and the Energiewende varied widely depending Ralf Wiegert, Economic Impact Analysis, IHS [email protected] What business thinks of the energy transition on the size of the Sebastian Bolay, Energy Expert, German Chamber What German households pay for power of Commerce and Industry business, their location +49 30 20308 – 2202, [email protected] Kirsten Best-Werbunat, McKinsey & Company or industrial sector.” +49 211 136 4688, [email protected]

DIHK Energy Transition Barometer, 2015 Reading Ecofys/Fraunhofer ISI (2015) Electricity Costs of Energy Intensive Industries – An International costs of the nuclear phase-out and the Comparison move into renewables could drive some manufacturing abroad. They say this Destatis (2015) Long-term energy price trends could take a toll on the car industry and Centre for European Economic Research (2015) other pillars of the economy. But other Social Implications of Green Growth Policy from the sectors hope Energiewende technologies Perspective of Energy Sector Reform and its Impact on Households will secure future export success.

23 Clean Energy Wire | CLEW 2016

#Technology Technology to transform the energy system - made in Germany

ermany’s energy transition antic- German scientists say their work has Gipates a vastly more efficient and already made important contributions interconnected energy system in the to the global goal of decarbonisation. future. It also poses huge technological Batteries that can store power and challenges – and challenges for legis- help to regulate the grid within sec- lation and business models keep pace. onds with high accuracy, smart grids ©[WEMAG AG] Batteriespeicher Schwerin Akkuhalle.

24 Directory #Technology

Contacts Reading Younicos (power storage developer) Agora Energiewende (2015) What if there were a +49 30 818799010, [email protected] nationwide rollout of PV battery systems? Hamburg University of Applied Sciences (HAW) EU Commission (2014) Research and Innovation +49 40 428 75-9132, [email protected] performance in Germany - Country Profile Karlsruhe Institute of Technology (KIT) BMBF (2014) Power to Gas, Power to Fuel – Innova-

+49 721 608-47414, [email protected] tive through Utilization of CO2 Fraunhofer ISE BMWi (2015) Federal report on energy research (in +49 761 4588-5147, [email protected] German) hofer.de Fraunhofer IWES CLEW Factsheets [on cleanenergywire.org] +49 471 14290-228, [email protected] hofer.de Technologies of Energiewende Fraunhofer ISI Combined heat and power – an Energiewende +49 721 6809 100, [email protected] cornerstone? hofer.de Association for Electrical, Electronic & Information Technologies (VDE) +49 69 6308-461, [email protected] Federal Ministry of Education and Research (BMBF) +49 30 18 57-5050, [email protected] and other solutions for flexibility and integration of different power sources are key to adapting the power system to a high level of renewables. Germany has “What we will have is an electricity system that doubled research and development funds in under a decade. is very cheap in terms of getting fuel for free.” Hans Schäfers, Hamburg University of Applied Sciences 25 Clean Energy Wire | CLEW 2016

#Business&Jobs Jobs won, jobs lost – how the Energiewende is transforming the labour market

ermany’s transition to a low-carbon, business models have emerged, many Gnuclear-free economy shakes up the beyond the renewables industry. Mean- country’s labour market. The Energie- while, the conventional energy sector wende has created hundreds of thou- has been bleeding jobs, and many busi- sands of jobs – from solar-panel cleaners ness leaders warn the Energiewende will to housing-insulation specialists and cost many more jobs in other traditional wind turbine engineers. Countless new pillars of Germany’s economic success, ©[ictor] iStock.

26 Directory #Business&Jobs

Contacts Reading Ulrike Lehr, Institute of Economic Structures GWS (2012) Employment effects of renewable Research (GWS) energy expansion on a regional level +49 541 40933-280, [email protected] BMWi (2014) Employment from renewable energy Thure Traber, German Institute for Economic in Germany: expansion and operation – now and in Research (DIW) the future, third report on gross employment +49 30 2060972 23, [email protected] Sebastian Bolay, Chambers of Commerce and CLEW Factsheets [on cleanenergywire.org] Industry (DIHK) +49 30 20308 2202, [email protected] Where the Energiewende creates jobs Institute for the Study of Labour (IZA) +49 228 3894 223, [email protected] Institute for Employment Research (IAB) +49 911 179 1946, [email protected] Institute for Economic Research (Ifo) +49 89 9224 1218, [email protected] Institute for Futures Studies and Technology Assessment (IZT) +49 30 8030880, [email protected] German Industry Initiative for Energy Efficiency (DENEFF) such as steel or the car industry. Changes +49 30 36 40 97 01, [email protected] are so rapid that researchers have trouble keeping track. How many jobs the drive to -intensive, renewables and the energy transition as a “Installation is extremely labour whole will eventually create remains hard to gauge and hinges on many political and so carpenters and craftsmen are needed individual decisions in coming decades. for every building that’s retrofitted.” Christian Noll, German Industry Initiative for Energy Efficiency 27 Clean Energy Wire | CLEW 2016

#Utilities Fighting for survival: Germany’s big utilities look for a future in the new energy world

ermany’s ambitious transition Top dogs E.ON and RWE want to Gto renewable energy has left the master the challenges by splitting major utilities that have dominated off their conventional power busi- the market for decades out in the nesses, Vattenfall has opted to sell cold. Their business models, based on its brown coal operations, and the “old” energy world of centralised state-owned EnBW is redoubling generation and large-scale invest- efforts to become greener. Despite ment, have been eroded. these drastic steps, their future ©[Bengt Lange] Moorburg Power Plant 11, Vattenfall.

28 Directory #Utilities

Contacts Reading Thorsten Lenck, Energy Brainpool Thomson Reuters Practical Law (2014) Electricity +49 30 7676 5423, regulation in Germany: Overview [email protected] RWE (2015) Paving the way for growth with contin- Helmuth Groscurth, Arrhenius Institute for Energy ued focus on financial discipline and Climate Policy +49 40 3708 4420, [email protected] RWE (2014) Transition of the German utilities: increasing the emphasis on the service component Simon Skillings, Trilemma UK of supply +44 1926 842016, [email protected] E.ON (2015) Empowering customers. Shaping mar- German Association of Energy and Water Indus- kets. Capital market story tries (BDEW) “We have seen a kind of worst +49 30 300 199 1160, [email protected] Bundeskartellamt (2014) Energy monitoring report 2014 (in German) case scenario materialise for the RWE AG +49 201 12-20580, wolfgang.schley@.com Greenpeace (2015) The future of large utilities (in German) big energy companies.” E.ON +49 211 45793570, [email protected] Thorsten Lenck, Energy Brainpool CLEW Factsheets [on cleanenergywire.org] Vattenfall +49 30 81822321, [email protected] Small, but powerful – Germany’s municipal utilities EnBW German utilities and the Energiewende +49 721 6314320, presse@.com role in Germany’s fast-changing Securing utility payments for the nuclear clean-up energy markets is far from clear. The Vattenfall’s German brown coal: What’s being sold upheaval is not yet over, as new busi- and who wants to buy ness models and mighty competitors like Google could soon enter the fray. The history behind Germany’s nuclear phase-out Experts say it remains to be seen Can Germany’s energy giants change their DNA? if they can innovate their way out of the crisis.

29 Clean Energy Wire | CLEW 2016

#Transport Car giant Germany struggles to ignite Energiewende in transport

hen it comes to the automobile, made little headway in linking up its WGermany flaunts unique grav- transport prowess to another prom- itas. The German engineer Karl Benz inent industry showcase – the tran- invented the first automobile powered sition to renewable energy. It’s clear by an internal combustion engine 130 that extending the Energiewende to years ago. Today, sales by its carmak- transport will be crucial in the coun- ers Daimler-Benz, Volkswagen, BMW, try’s quest for a low-carbon economy, Porsche, and Audi top Denmark’s but there is no consensus on how this annual GDP. But so far, Germany has should be done. Carmakers have lob- ©[Petair] Fotolia.

30 Directory #Transport

Contacts Peter Mock, International Council on Clean “Decarbonisation isn’t Transportation (ICCT) Christian Hochfeld, Agora Verkehrswende +49 30 847129102, [email protected] [email protected] happening anywhere in Deutsche Umwelthilfe (DUH) Andreas Knie, Innovation Center for Mobility and +49 30 240 086 722, [email protected] the sector. Measures are Social Change (Innoz) +49 30 23 88 84-101, [email protected] Reading expensive and intervene Peter Kasten, Institute for Applied Ecology (Öko-Institut) Germany Trade & Invest (2015) Electromobility in with our daily life. +49 30 405085 349, [email protected] Germany: Vision 2020 and beyond Thus, it just hasn’t been Oliver Lah, Wuppertal Institute for Climate, PricewaterhouseCoopers (2015) Energiewende Environment, and Energy Outlook: Transportation Sector +49 30 2887458 16, [email protected] pushed by either Agency for Renewable Energies (2015) Renewables Werner Reh, Friends of the Earth Germany (BUND) in the transport sector: Which routes are open? politicians or industry.” +49 30 27586435, [email protected] BMVI: Electric mobility Ferdinand Dudenhöffer, Centre for Automotive Peter Kasten, Research, University of Duisburg- German Institute for Economic Research (2015) Institute for Applied Ecology +49 203 379 1111, Power system impacts of electric vehicles in [email protected] Germany: Charging with coal or renewables? Stephan Immen, Federal Motor Transport Öko-Institut(2014) Development of an evaluation bied hard – and with some success – Authority (KBA) framework for the introduction of electromobility against stricter emissions limits, and +49 461 316 1293, [email protected] they risk falling behind the global Sandra Courant, German Association of the CLEW Factsheets [on cleanenergywire.org] competition on battery technologies. Automotive Industry (VDA) Energiewende in transportation: Vague goals, Consumers are also slow on the uptake +49 30 897842 124, [email protected] modest strides of electric vehicles, making it unlikely Sebastian Rudolph, Federal Ministry of Transport The role of biofuel and hydrogen in Germany’s the government will reach its target of and Digital Infrastructure (BMVI) transport Energiewende putting 1 million electric vehicles on +49 30 18300 7200, [email protected] German roads by 2020.

31 Clean Energy Wire | CLEW 2016

#Grid Connecting up the Energiewende

ermany has to update its network power can be as big a problem for the Gto cope with decentralised, fluc- stability of the grid as too little. And tuating supply as the country shifts to not everyone is in favour of building renewables. new power lines to carry electricity Rapidly growing capacity to the country’s industrial south. The in the north means a bountiful supply debate raises key challenges, not only of low-cost electricity. But too much of public acceptance but of how central ©[Gina Sanders] Fotolia.

32 Directory #Grid

Contacts Reading Federal Network Agency (Bundesnetzagentur) Bundesnetzagnetur (2014) Grid expansion in Ger- +49 228 14 9921, [email protected] many. What you need to know Andreas Jahn, Regulatory Assistance Project (RAP) BMWi (2015) Grids and Grid Expansion – Ministry new +49 30 2844 90121, [email protected] website in English “As long as the Lorenz Jarass, RheinMain University of Applied German Institute for Economic Research (DIW) Sciences (2015) Electricity grids and climate targets: New power lines between +49 611 54101804, [email protected] approaches to grid planning Institute of Energy Economics at the University of DIW (2014) Beyond the “Grid-Lock” in electricity north and southGermany Cologne (EWI) interconnectors: The case of Germany and Poland +49 221 277 29 116, the [email protected] Pentalateral Energy Forum (2015) Generation are not completed, adequacy assessment 50Hertz Transmission (grid operator) +49 30 5150 3417, [email protected] Grid development plans of the four German trans- problem of a lopsided mission grid operators (TSOs) TenneT (grid operator) only worsen.” +49 921 50740 4045, [email protected] Bundesnetzagentur (2014) Monitoring report 2014 system will (in German) Amprion (grid operator) Andreas Jahn, +49 231 5849 13785, [email protected] CLEW Factsheets [on cleanenergywire.org] Regulatory Assistance Project (RAP) TransnetBW (grid operator) +49 711 21858-3567, [email protected] Set-up and challenges of Germany’s power grid government works with regional states Chambers of Commerce and Industry (DIHK) Setting the power price: The merit order effect to make the Energiewende a success. +49 30 20308 – 1607, [email protected] Re-dispatch costs in the German power grid Meanwhile, other possible solutions are floated, such as a decentralised pow- Loop flows: Why is wind power from northern Ger- many putting east European grids under pressure? er supply, demand-side management, power storage, or splitting the German Germany’s electricity grid stable amid energy power market. transition

33 Clean Energy Wire | CLEW 2016

#Finance Finance

inancing the Energiewende: Ger- Energiewende a very attractive green F many has mobilised over 200 billion investment opportunity. Now, insti- euros for renewable energy projects tutional financiers are replacing some over the last 10 years, most of it from small-scale investors. Larger projects local and national investors. Relatively such as offshore wind play a more im- high yields, a stable cash flow and a re- portant role as banks, insurance firms liable public framework have made the and investment funds increasingly look ©[Marina Lohrbach] Fotolia.

34 Directory #Finance

Contacts Reading German Savings Banks Association (DSGV) United Nations Environment Programme (2015) +49 30 20 22 55 110, [email protected] Global Trends in Renewable Energy Investment National Association of German Cooperative Allianz Capital Partners (2016) Renewable Energy Banks (BVR) (Investment Profile, Portfolio) +49 30 2021-1300, [email protected] Relatively Institute for Energy Economics and Financial high yields, German Insurance Association (GDV) Analysis (2015) The Case for Divesting Coal from the a stable +49 30 2020-5903, [email protected] Norwegian Pension Fund cash flow Susan Dreyer, Carbon Disclosure Project, Norton Rose Fulbright (2013) European renewable German Chapter energy incentive guide - Germany and a reliable +49 30 311 777 160, [email protected] public KfW Group (2016) Overview of “Energy and the framework Nathalie Cahn, KfW Group Environment” support programmes have made +49 69 74 31-20 98, [email protected] the Energiewende Alexander El Alaoui, Germanwatch a +49 30 28 88 356-84, [email protected] very attractive Germany Trade and Invest (GTAI) green +49 30 200 099-173, www.gtai.de investment opportunity. for carbon-free investment. Funding by the public banking system is also playing an increasingly important role. The En- ergiewende will continue to be financed by a broad mix of investors, but is part of global finance rather than a German singularity.

35 Clean Energy Wire | CLEW 2016

#Efficiency Taming the appetite for energy

t will take more than just making the by dramatically increasing efficiency. Ipower supply green to achieve cli- The potential is huge and so far largely mate targets. Germany must also tackle untapped, which is why efficiency has demand and consume less energy. In the been dubbed the “sleeping giant” of the past, energy use only fell significant- Energiewende. The government’s Climate ly when the economy took a hit. Now Action Programme, designed to get Ger- the country wants to prove it is possi- many back on track for its 2020 climate ble to decouple growth and emissions goals, suggests that increasing energy ©[Ingo Bartussek] Fotolia.

36 Directory #Efficiency

Contacts Federal working group for the renewal of old buildings Matthias Zelinger, German Engineering +49 30 48 49 078-55, [email protected] Federation (VDMA) +49 69 6603 1351, [email protected] Institute for Housing and Environment +49 6151 2904 47, [email protected] Robert Pörschmann, Friends of the Earth Germany (BUND) +49 30 27586 436, [email protected] Reading achieve Stefan Thomas, Wuppertal Institute for Climate, BMWi (2014) National Action Plan on Energy -Effi “Germany can Environment, and Energy ciency (NAPE) +49 202 2492 143, [email protected] targets much DENEFF (2014) Sector monitor energy efficiency its emission Wolfgang Eichhammer, Fraunhofer ISI (English summary) +49 721 6809 158, German Institute for Economic Research (2014) Im- if energy is used [email protected] faster proved energy efficiency: Vital for energy transition Christian Noll, German Industry Initiative for and stimulus for economic growth Energy Efficiency (DENEFF) more efficiently.” Agora Energiewende (2014) Benefits of Energy +49 30 36 40 97 01, [email protected] Robert Pörschmann, BUND Efficiency on the German Power Sector Volker Breisig, PricewaterhouseCoopers (PwC) International Energy Agency (2015) Energy Effici­ +49 211 981 4428, [email protected] ency Market Report 2015 Wolfgang Irrek, Ruhr West University of Applied Sciences efficiency can bring more emissions cuts – +49 208 88254-838, [email protected] CLEW Factsheets [on cleanenergywire.org] 25 to 30 million tonnes per year – than Carsten Petersdorff, Ecofys Details of new Climate Action Programme any other measure. But saving energy on +49 221 27070 110, [email protected] Homes for the Energiewende a large scale – by insulating buildings, changing behaviour and introducing many German Energy Agency (Dena) Germany’s greenhouse gas emissions and climate +49 30 726 165 657, [email protected] new and often expensive technologies – targets requires everyone’s participation and has Combined heat and power - an Energiewende proven a hard sell so far. cornerstone?

37 Clean Energy Wire | CLEW 2016

#Citizens’ Energy Germany between citizens’ energy & nimbyism

ince the energy transition took to maintaining high public support Soff in 2000, millions of Germans for the energy transition despite have become energy producers, in- rising power prices. But plans for vesting in solar panels on their houses new regulations including the transi- and buying shares in wind parks. tion to a more auction-based system Citizens’ engagement has been key have stoked concerns that more com- ©[anweber] Fotolia.

38 Directory #Citizens’ Energy

Contacts Reading German Cooperative and Raiffeisen Confedera- German Cooperative and Raiffeisen Confedera- tion (DGRV) tion (2015) Energy Cooperatives – Results of the +49 30 726 220-900, [email protected] DGRV-Survey Association of Energy Consumers Leuphana University (2015) On the state of energy +49 170 44 88 606, [email protected] cooperatives in Germany (in German) Ortwin Renn, Chair for Engineering and Environ- Leuphana University (2014) Market reality of mental Sociology, University of Stuttgart citizens’ energy and possible consequences of regu- +49 711 6858 3970, latory changes (in German) “If people [email protected] participate with Association of German Engineers (2014) Loca- Heinrich Degenhart, Professor of Banking and tion-related problems of acceptance of industrial their own money, for Finance, Leuphana University Lüneburg and technology policy (in German) +49 4131 677 1930, [email protected] MAGKS / Andreas Ziegler (2015) On the relevance example in a wind or solar Harald Welzer, FuturZwei Foundation of ideological identification and environmental val- +49 30 7809 7829 0, [email protected] ues for beliefs and attitudes toward climate change: power An empirical cross country analysis plant in their area, Institute for Advanced Sustainability Studies (IASS) +49 331 288 22 340, [email protected] An example of an energy-friendly suburb, in Frei- they will also burg: www.vauban.de support it.” Alliance for Citizens’ Energy (BBEn) Manfred Fischedick, Wuppertal Institute +49 30 3088 1789, rene.mono@buend- nis-buergerenergie.de CLEW Factsheets [on cleanenergywire.org] Wuppertal Institute for Climate, Environment Citizens’ participation in the Energiewende and Energy plex rules will put citizens off. At the +49 202 2492 180, [email protected] Polls reveal citizens’ support for Energiewende same time, important Energiewende Facts and figures on the social impact of the Ener- projects – such as grid extension and giewende wind parks – have run into resistance, requiring new ways to keep the public What German households pay for power on board.

39 Clean Energy Wire | CLEW 2016

#Energiewende #Society How the Energiewende is transforming Germany as we know it

ermany’s energy revolution is lifestyle choices to go green, the trans- Ghaving a far-reaching impact formation doesn’t stop at architecture, on everything from the landscape to tourism or urban planning. The chang- education. As some farmers earn more es and their knock-on effects don’t from their “energy harvest” than please everybody: there are winners traditional crops and citizens rethink and losers when a society and economy ©[Sunny studio] Fotolia.

40 Directory #Energiewende #Society

Contacts Reading Günther Bachmann, German Council for Sustaina- KfW (2014) EnEV 2014: Housing Stock is Key to Suc- ble Development cess: Nine Million Buildings in Need of Renovation +49 30 338424-122, [email protected] Association of German Engineers (2014) Loca- tion-related problems of acceptance of industrial Harald Welzer, Director FuturZwei Foundation and technology policy +49 331 2354 4674, [email protected] German Institute for Economic Research (2015) The “Technology and renewable Institute for Employment Research (IAB) Effect of Wind Turbines on Residential Wellbeing +49 911 179 1946, [email protected] energy production are changing Institute of Economic and Cultural Geography, Leibniz University of Hannover (2015) Gone with faster than society does.” the wind? The impact of wind turbines on tourism demand Günther Bachmann, Jeremy Rifkin(2011) The Third Industrial Revolution Sustainability Council Institute for Social Movement Studies(2016) En- gagement in the Energiewende (in German)

CLEW Factsheets [on cleanenergywire.org] Facts and figures on the social impact of the Ener- giewende

undergo such sweeping recon- struction. While some jump aboard, transforming their homes into small solar power stations, others gripe about the “ugliness” of wind turbines and photovoltaic panels.

41 Clean Energy Wire | CLEW 2016

#EEG2016/Law Germany revamps renewables law as it adapts to future with green power

ermany’s renewable energy market over the expansion of renewables, and Gis facing the most far-reaching maintain exemptions that help large legislative changes since green power energy users deal with the transition. incentives were introduced a quarter of 2016 will see the next reform of the law. a century ago. The controversial revamp A shift from feed-in tariffs to a system of the (EEG) in of auctions to define renewable support 2014 aimed to cut costs related to the is the most striking change. Some of Energiewende, exert greater control the measures have a short track record ©[Giso Bammel] Fotolia.

42 Directory #EEG2016/Law

Contacts Reading Lars Holstenkamp, Energion, Leuphana University BMWi (2015) Renewable Energy Sources Act, 2014 +49 4131 677-1931, [email protected] (unofficial English translation) Fraunhofer IWES BMWi (2016) Information on new auction design for +49 89 1205 1307, [email protected] renewables Rhineland-Westphalia Institute for Economic BMWi (2015) Revision amending the Renewable Research Energy Sources Act – Key points +49 201 8149 213, [email protected] Agora Energiewende (2014) Q+A on the 2014 Friends of the Earth Germany (BUND) Reform of the Germans Renewable Energy Actman +49 30 275 864 89, [email protected] Renewable Energy Act Matthias Lang, Bird & Bird / German Energy Blog Arrhenius Institute (2014) Growth trajectory of +49 211 2005 6293, matthias.lang@germanenergy- renewable power (in German) blog.de German Renewable Energy Federation (2015) from other countries show: Factsheet: Renewables from Germany logic and all experiences Deutsche Windguard Statistics for wind energy “Economic development In tenders the largest bidders have an advantage.” Lars Holstenkamp, Leuphana University CLEW Factsheets [on cleanenergywire.org] and strike at the very heart of the 1990 to more market forces and cut costs, as EEG reform 2016 – switching to auctions for renew- ables law. A target corridor for renewable well as adjust renewable growth to the development will be upheld, according slow grid expansion. But renewables Defining features of the Renewable Energy Act (EEG) to the Ministry for Economic Affairs and developers, particularly in the solar and Comparing old and new: Changes to Germany’s Energy, which is writing the reformed wind sector, have reservations, saying Renewable Energy Act legislation. the reforms – and the “growth corri- Position of key stakeholders on the EEG 2.0 Energy experts stress that the chang- dor” in particular – make investment in es are necessary to expose the sector renewables less secure.

43 Clean Energy Wire | CLEW 2016

#International #Energy Union Germany’s energy transition in Europe: The solo draws to a close

ermany’s energy transition be- cantly impacts markets in neighbouring Ggan as a lonely expedition. Rapidly countries. Germany has learned that it expanding green energy and switching cannot reach its goals independently off its nuclear power stations antago- and needs to cooperate in areas such as nised some neighbours, and the Euro- grid extension, trade and research. And pean Commission. Germany’s energy the EU’s plan for an “Energy Union” markets are at the geographic heart of will further deepen the German energy Europe. What happens here signifi- market’s ties to its neighbours. ©[Lulla] Fotolia.

44 Directory #International #Energy Union

Contacts Agora Energiewende (2015) The European Power System in 2030: Flexibility Challenges and Integra- Nikolas Wölfing, Centre for European Economic tion Benefits Research (ZEW) “People in this country and +49 621 1235 217, [email protected] Tennet (2015) Market Review 2014 Oliver Geden, German Institute for International Jacques Delors Institute (2015) Strengthening the also outside of Germany and Security Affairs (SWP) European electricity market through improved +49 30 880 070, [email protected] Franco-German cooperation who believe this must be Craig Morris, energytransition.de (Heinrich Böll European Commission (2015) 2030 Energy Strategy Stiftung) Öko Institut(2013) Impact of Germany’s nuclear +49 30 285 340, [email protected] some kind of act of phase-out on electricity imports and exports Georg Zachmann, Bruegel (think tank in Brussels) renationalisation of energy +32 2 227 4288, [email protected] CLEW Factsheets [on cleanenergywire.org] Federal Grid Agency policy [...] could not be +49 228 14 9921, [email protected] Understanding the European Union’s Emissions Trading System ENTSO-E (network of European electricity grid more wrong.” operators) Energiewende – Germany is not alone Rainer Baake, State Secretary +32 2741 0967, [email protected] Germany’s energy consumption and power mix in TenneT charts +49 921 50740 4045, [email protected] Capacity markets around the world But while many European countries Loop flows: Why is wind power from northern Ger- are following in Germany’s foot- Reading many putting east European grids under pressure? steps to push renewables, a Europe- BWMi (2015) Joint Declaration for Regional Co- an conse sus does not appear within operation on Security of Electricity Supply in the easy reach. Framework of the Internal Energy Market (2015) The Energiewende still poses major Weltenergierat / Prognos (2015) Security of supply: challenges in Europe, both for Germany a pan-European approach and its neighbours.

45 Clean Energy Wire | CLEW 2016

#Security Energy transition shapes foreign policy in Germany and beyond

nergy supply is inseparable from Russia into focus. While some experts EGerman foreign policy, as the warn against cutting these energy ties, country relies on imports to feed its others argue for an accelerated shift to energy appetite. The Ukraine crisis renewables in order to boost interna- has brought the risks of Germany’s tional security. At the same time, the dependence on oil, gas and coal from implications of a low-carbon future ©[Alex Kotlov] iStock.

46 Directory #Security

Contacts Wolfgang Ischinger, Ambassador/Chairman of CLEW Factsheets [on cleanenergywire.org] the Munich Security Conference (MSC) Kirsten Westphal, German Institute for Interna­ +49 89 37979 4921, [email protected] Germany’s dependence on imported fossil fuels tional and Security Affairs (SWP) +49 30 88007-0, [email protected] Federal Office for Economic Affairs and Export Control (BAFA) Friedbert Pflüger, Department of War Studies, +49 6196 908 1452, [email protected] “Experts from Russia clearly King’s College London +44 20 7848 3202, [email protected] Federal Institute for Geosciences and Natural Resources (BGR) see the changeover to re­ Hans-Josef Fell, Green Party / +49 511 643 2679, [email protected] +49 30 609819504, [email protected] newable energy as a threat. Matthias Ruchser, German Development Insti- Reading tute (DIE) A threat to their economy.” +49 228 94927 159, [email protected] The Economist (2014) European energy - Conscious uncoupling Christian Hübner, Konrad Adenauer Stiftung Christian Hübner, Konrad Adenauer Stiftung +51 1 320 2870, [email protected] Munich Security Conference (2014) Energy Security Summit 2014 - U.S. shale revolution and the crisis in German Foreign Office Ukraine: A turning point for Europe’s energy policy? +49 30 5000 2056, [email protected] BGR (2014) Energy Study – Reserves, Resources and Availability of Energy Resources Matthias Ruchser, DIE (2014) We need a European Energy Transition (in German) Heinrich Böll Stiftung(2014) Germany’s energy transition: A blueprint for European energy security? for foreign and security policy are hardly limited to energy supply security. If Ger- SWP (2012) Globalising the German energy transition Clean Energy Wire many is to make its energy transition a European Commission (2014) European Energy is a joint initiative success, it could have profound geopolit- Security Study ical repercussions, and its impact might of Stiftung Mercator be felt across the globe. and the European Climate Foundation 47 www.cleanenergywire.org | @cleanenergywire

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