#““ # #renewables #coal exit #phasing out nuclear timetable: G20, elections, COP23 # ; BMW, Daimler, VW? #sustainable transport revolution utilities in turmoil # www.cleanenergywire.org

A Reporter’s Guide to ’s Context. Contacts. Access.

4th edition 2017 Clean Energy Wire | CLEW 2017 Our team of journalists and media professionals in is available to support journalists in their work. A Note from CLEW The landmark Paris Climate Agreement Foundation – we enjoy full in­dependence from heralds a global shift to a low-carbon future to any business or political interests. We share get climate change under control. Germany’s our funders’ commitment to work towards pioneering energy transition provides valuable the decarbonisation of the economy in order lessons on weaning a major economy off fossil to limit man-made climate change. Sven Egenter Kerstine Appunn Sören Amelang fuels: The repercussions of the country’s En- The CLEW “Reporter’s Guide to Germany’s Editor in Chief Correspondent Correspondent ergiewende are felt all across society and the Energy Transition”, now in its fourth edition, business sector, offering journalists a wealth gives journalists a starting point for their work of exciting and important stories. by highlighting the main storylines of the energy Yet researching this massive undertaking transition, providing lists of experts and links to in a foreign country with a tricky language is key readings. Our website cleanenergywire.org a difficult job, even for the most seasoned offers plenty more in-depth information reporter. This is compounded by the immense and contacts. Our daily news digest and our Eva Freundorfer Julian Wettengel Benjamin Wehrmann complexity of the technology and economics Twitter feed @cleanenergywire keep readers Programme Officer Correspondent Correspondent behind . At the same time, strong in the loop about Energiewende debates fact-based and critical journalism is essential to and events. We also organise workshops for inform the international debate about how to journalists, providing a first-hand view of the decarbonise the global economy. transformation. But most importantly, we offer Which is why Clean Energy Wire (CLEW) has support with specific questions and put you set out to support journalists in their work. in touch with experts – so don’t hesitate to Carel Carlowitz Mohn Felix Bieler Hedwig Gradmann Fully funded by two non-profit foundations – ask CLEW. Sven Egenter and Dir. Media Programmes Research Assistant Assistant Stiftung Mercator and the European Climate the Clean Energy Wire team

1973-1975 1979/1980 1986 1991 1997/2005

“? Enter the Greens Chernobyl disaster Kick-starting renew- No thanks!” Birth of Germany’s Green solid­if­ies ’ ables Germany, the world’s Germany’s anti-nu- Party is founded, with resist­ance to nuclear New legislation intro- sixth largest emitter at clear movement as an exit from nuclear energy duces feed-in tariffs the time, has to reduce

protests force plans for energy and a renew- for renewable power CO2 emissions under a nuclear power plant able future as key Climate change the agreement in to be aborted demands enters the discourse – a magazine story leads Activists first use the parliament to establish 2 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: Big Twidely known as the “Energie­wende”, feed-in tariffs for renewable energies utilities’ traditional business models have is the country’s planned transition to in the 1990s, the project has started to been hit hard while consumers and some a low-carbon, nuclear-free economy. So radically reshape the energy system businesses are concerned about higher far there have been two key elements to as a whole. As the traditional model of electricity costs. The coal industry first the process: centralised power generation is being benefitted from the nuclear phase-out, replaced by diverse sources of energy but its future is now uncertain as the gov- that fluctuate with the weather, not ernment steps up its efforts to cut green- The phase-out of nuclear power only the grid and the power market are house gas emissions. At the same time, (by 2022) affected. While so far mainly focused entirely new industries have sprung up. The development of renewable on electricity, the Energiewende is now energies in the power sector also expected to transform other sectors like industry, housing, construction, heating and transport. For specific energy transition targets see pages 4- 5.

2000 2007 2010 2011 2014 2015 2016 2017

Renewable Energy Act EU targets Extending nuclear Nuclear phase-out #2 New EEG & climate Slow progress Spin-off Renewables Renewables granted EU sets 2020 climate The nuclear consensus Merkel government action The Energiewende Utilities E.ON and RWE Reform feed-in tariffs and grid targets: 20% renew­ is reversed by a con- formulates new Govt. lowers feed-in monitoring report split to separate renew­ Auctions determine priority ables share, 20% GHG servative government nuclear phase-out by tariffs, starts PV auc- shows climate ables from fossil plants renewable payments reduction, 20% more 2022 with large parlia- tions and introduces targets are “in serious Nuclear phase-out #1 efficiency Energy concept mentary majority after plan to achieve 2020 danger” Climate Action Plan Federal elections Red-Green govern- Govt. sets out renew- Fukushima disaster climate targets Govt. adopts ambi- to determine future ment and utilities ables and climate tious 2030 emission course of Energie- agree to phase out targets for 2020 and targets for individual wende; G20 and nuclear by 2022 2050 economic sectors COP23 in Germany 3 Clean Energy Wire | CLEW 2017

#Energiewende – Targets

he overall objective of the Ener- Renewables are to cover at least emission re ductions Tgiewende is to reduce Germany’s 80 percent of the country’s gross power Sector 2014 status 2030 target and phase consumption by the middle of the cen- cut from 1990 levels cut from 1990 levels out nuclear power, making the economy tury (31.6 percent in 2015). Energy 23 % 61-62 % more environmentally sustainable. Buildings 43 % 66-67 % The expert opinion accompanying the Transport 2 % 40-42 % On a national level, Germany aims to latest Energiewende Monitoring Re- Industry 36 % 49-51 % cut greenhouse gas emissions by 40 per- port by the federal economy ministry in Agriculture 18 % 31-34 % cent by 2020, by 55 percent by 2030 December 2016 warned that the country Other 69 % 87 % and by up to 95 percent by 2050. The would probably miss its 2020 emission Total 28 % 55-56 % share of renewables in gross final energy targets and other crucial Energiewende Source: Climate Action Plan 2050, BMUB (2016). consumption is to rise to 60 percent goals, threatening the entire project’s by 2050 (from 14.9 percent in 2015). credibility. The economy ministry’s 2014 Climate Action Programme detail- Plan 2050. In light of the Paris Climate

ing additional measures and CO2₂ saving Agreement, the plan fine-tunes Ger- potential is likely to be less effective man climate goals. It includes target than predicted. corridors for reducing greenhouse gas emissions in the individual economic In November 2016, Germany’s gov- sectors as interim goals for the year ernment agreed on a basic framework 2030. The energy sector will have to cut for largely decarbonising its economy its emissions roughly in half, compared by mid-century – the Climate Action to today’s levels.

4 Energy transition targets

Quantitative targets of the energy transition 1990 2005 2008 2015 2020 2030 2040 2050 Reduce -40 % greenhouse gas -55 % emissions -70 % % -80 - 95 % % % % 5-20 % 100 72.1% 45 60 30

Reduce Increase share of renewables power 80 % 65 % in power

consumption % 50 % % % % consumption 31.6 % 35 % 90 75 96.0 100 -20 % Increase share Reduce of renewables in primary energy -50 % gross final energy

consumption % % consumption % % 60 % 30 % 45 % 92.4 100 50 14.9 % 80 18 %

Reduce heat demand

in buildings % % % 80 100 88.9 Reduce final energy

consumption %

in transport % % % 101.3 100 60 90 1990 2005 2008 2015 2020 2030 2040 2050 Sources: BMWi, 2016; UBA, 2017.

5 Clean Energy Wire | CLEW 2017

#Energiewende – Key Figures

3.6 % Renewables’ share in gross German power generation in 1990 29.5 % Renewables’ 45.8 m Passenger cars 34,022 Pure electric € 3.9 bn value of E.ON € 20 bn value of RWE share in gross power registered in Germany cars registered = 0.07 % fossil spin-off Uniper renewables spin-off innogy generation in 2016 (01/2017) (01/2017) at stock market launch at stock market launch and in September 2016 in 2016 12 minutes 42 seconds: Average power outage in 2015 Compare (2014) 93 % of Germans € 22.8 bn Renewable 330,000 People 20,214 People Denmark: 12 mins believe use and roll-out surcharge paid by power employed in the employed in the lignite France: 50 mins of renewables is consumers in 2016 renewables sector (2015) industry UK: 53 mins important (2016) (09/2016) Poland: 192 mins

20.6 29.2 ct/kWh 50 % of newly built houses 11.1 % Drop in energy 12.6 % Renewables’ 32.3 % Renewables’ Average household power 2015 supported through demand for heating share in primary energy share in gross power con- 2007 and 2017 – gov programme “Energy-effi- 2008 - 2015 consumption in 2016 sumption in 2016 thereof­ 6.88 ct/kWh renew­ ­­­ cient Construction” (up from 1.3 % in 1990) (up from 3.2 % in 1991) able surcharge in 2017 4.48 2.86 ct/kWh Average wholesale 34.6 % of 63 % of natural gas im- 902 m tonnes 27.9 % Fall in green-

electricity price in 2007 imports came from ports to Germany came from CO2 equivalents green- house gas emissions and 2016 (2015) Norway (34.1 %) and the house gas emissions 1990 - 2015 Netherlands (28.9 %) (2015) in 2015

6 Energy transition data 27.9 % greenhouse gas reduction since 1990 Emission trends for Germany by sector 1990-2015

1,251 1,200

80 1,043 72 992 999 69 1,000 68 972 975 68 67 68 132 67 942 922 927 945 67 67 133 907 904 902 64 68 68 65 64 125 63 63 135 130 62 144 64 130 97 140 65 63 64 133 65 93 132 123 119 67 121 67 122 114 64 89 114 800 93 112 94

108 751 99 97 96 101 95 91 107 96 83 82 86 77 77 74 73 79 74 100 77 75 76 73 61 164 61 62 63 61 62 167 65 173 178

600 174 563 178 178 154 170 170 179 182 177 178 183 157 161 154 159 187 155 154 156

160 2020 reduction 161 153

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

400 121 equivalents in million tonnes equivalents 109 127 2 2030 reduction CO target: -55% 427 200 413 388 386 381 391 383 379 380 374 370 372 368 367 357 377 364 356 367 356 353 354 344 347 344 335

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 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 Waste Other Total emissions without LULUCF

Without emissions from land use, land-use change and forestry (LULUCF) Source: UBA, 2017.

7 Clean Energy Wire | CLEW 2017 gross power production Development of gross power production in Germany 1990-2016 Mineral oil 27.3 27.5 Others Other 26.2 27.0 0.9% 600 4.3% Renewables 191.4 187.4 Natural gas Mineral oil 161.4 151.3 12.1% 500 Natural gas Wind onshore 10.3%

67.5 61.1 Hard coal 400 Hard coal 62.0 78.5 17.0% Renewables 127.3 Wind offshore 2.0% 118.6 29.5% 300 117.7 Hydro power 3.3% 110.0 Lignite 7.0%

200 160.9 in 2016 % shares 155.8 terawatt-hours (TWh) terawatt-hours 154.5 150.0 Lignite Solar 5.9% 100 23.1% Nuclear power 97.3 97.1 Nuclear 91.8 84.9 13.1% Waste 0.9% 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016* *2016: preliminary data Source: AGEB, December 2016. Share of energy sources Germany’s power export balance 1990-2016 in primary energy consumption 2016 Percentages add up to 101.5% as net power 675 60 exports are not visualised in this graph. Power export balance Mineral oil 650 Gross power generation 50 34.0% Others Waste 1.0% Gross power consumption 1.8% Hydro power 0.6% 625 40 2.1% Net export Net

600 30 Solar 1.2% Renewables Biomass 7.3% 575 20 Natural gas 12.6% 22.7% 550 10 terawatt-hours (TWh) terawatt-hours Nuclear 6.9% 525 0 Hard coal Lignite 12.2% 11.4%

500 -10 import Net Geothermal 0.4%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: BMWi 2017. Preliminary data Source: AGEB, December 2016.

8 power export balance Calendar

#Energiewende – Dates 2017

17 - 18 March: Meeting of G20 Finance 14 May: State elections in North 7 - 8 July: G20 Summit, in HAMBURG. Ministers and Central Bank Governors, Rhine-Westphalia. 24 September: Federal elections in BADEN-BADEN. Late spring / early summer: Germany’s Germany, followed by coalition talks. 20 - 21 March: The German govern- political parties will decide on their 18 - 20 October: 5th World Collabora- ment’s annual Berlin Energy Transition election campaign programmes. tive Mobility Congress “wocomoco”, Dialogue 2017 – “Towards a global En- 21 - 22 June: German Association of in BERLIN. ergiewende”. Speakers include foreign Energy and Water Industries Congress minister and IRENA head 6 - 17 November: COP23, in BONN. 2017 – conference on energy markets Adnan Z. Amin, in BERLIN. and energy policy, in BERLIN. 26 March: State elections in Saarland.

4 - 5 April: 14th Hamburg Offshore Wind Conference, in HAMBURG.

3 - 5 May: Berlin Energy Days 2017 Con- ference, in BERLIN.

7 May: State elections in Schleswig-Hol- stein.

9 - 10 May: Handelsblatt Digital Conference, in BERLIN. Calendar power export balance 9 Clean Energy Wire | CLEW 2017

#Energiewende – Contacts

… for official statements Institute for Applied Ecology (Öko-Institut) … for industry comment Sustainable development consultancy and research Federal Ministry for Economic Affairs institute. +49 761 45295 224,[email protected] , German Association of Energy and Water Indus- and Energy (BMWi), +49 30 18 615 6121, www.oeko.de/en tries (BDEW), Germany’s largest energy industry as- [email protected], www.bmwi.de/en sociation. +49 30 300 199-1160,[email protected] , Agora Energiewende, focusing on www.bdew.de/internet.nsf/id/en_home Federal Ministry for the Environment, dialogue with energy policymakers in the pow- Nature Conservation, Building and er sector. +49 30 700 1435-110, German Association of Local Utilities (VKU) Nuclear Safety (BMUB), +49 30 18 305 2010, [email protected], Representing the many local and regional utilities [email protected], www.bmub.bund.de/en www.agora-energiewende.de/en (Stadtwerke) in Germany. +49 30 58580-226, [email protected], www.vku.de/other-languages/english Federal Ministry of Transport and Digital German Institute for Economic Research (DIW) (BMVI), +49 30 18300-7200, DIW’s energy, transportation and environment, Federation of German Industries (BDI) [email protected], www.bmvi.de/en and climate policy departments study the econom- +49 30 2028-1565, [email protected], english.bdi.eu ics and politics of climate change and energy. German Federation (BEE) Sabine Fiedler, +49 30 89789-252, [email protected], … for latest data and research +49 30 275 81 70-16, [email protected], www.diw.de/en www.bee-ev.de/english Agora Verkehrswende, Think tank focusing on the Fraunhofer ISE, Solar energy research institute energy transition in the transport sector. and publisher of electricity production data. +49 30 700 1435-000, [email protected], Also see their data and graphs at www.agora-verkehrswende.de/en www.energy-charts.de/index.htm, AG Energiebilanzen, Energy market research group. +49 761 4588-5147, www.ise.fraunhofer.de/en +49 30 8913987, [email protected], German Renewable Energies Agency (AEE) the experts www.ag-energiebilanzen.de/4-1 +49 30 200 535 52, a.knebel@unendlich-viel- … for a list of over 250 experts and energie.de, www.unendlich-viel-energie.de/english institu­tions with insights into the Energiewende­ see: experts 10 www.cleanenergywire.org/ Contacts & Sources

#Energiewende – Reading in English

cleanenergywire.org Our website pro- Schmid et al. (2016) Putting an energy PwC (2015) Ener- vides dossiers for in-depth analysis, system transformation into practice: giewende outlook: factsheets, news articles, a daily press The case of the German Energiewende. Transportation sector. digest, an expert database, and more. Federal Ministry for the Environment Centre on Regulation in Europe Agora Energiewende (2015) Under­ (BMUB) (2016) Climate Action in Figures (2015) The energy transition in Europe: standing­ the Energiewende; Facts, trends and incentives for German initial lessons from Germany, the UK (2013) 12 Insights on Germany’s Ener- climate policy. and France. giewende. Good introductory readings Federal Environment Agency (UBA) energytransition.de A website/blog, on the energy transition in the pow- (2015) Data on the Environment. funded by the Heinrich Böll Foundation, er sector. explaining what the energy transition AG Energiebilanzen (2016) Evaluation The Federal Ministry for Economic is, how it works, and what challenges tables on the energy balance 1990 Affairsand Energy (BMWi) website lie ahead. to 2015. offers a wide range of publications in Federal Ministry for the Environment English, including the newsletter German Foreign Office(2015) Who is (BMUB) (2016) Climate Action Plan 2050. “Energiewende direkt”. Who of the Energiewende in Germany. Brochure of contacts in politics, industry Hager, Carol and Christoph H. Stefes German Institute for Economic Re- and society. (eds.) (2016) Germany’s Energy Transi- search (2015) Deep Decarbonisation in tion. A Comparative Perspective. Germany. Macro analysis of the Eco- National Geographic (2015) Germany nomic and Polit­ical Challenges of the Could Be a Model for How We’ll Get Pow- Ecologic Institute (2016) Understanding Energiewende. er in the Future. the Energy Transition in Germany. experts www.cleanenergywire.org/ 11 Clean Energy Wire | CLEW 2017

#Climatexxx and CO2 #Fossil Fuels Green pioneer Germany struggles to make climate protection a reality

s the home country of the Energie­ ting greenhouse gas emissions is mixed: Awende, Germany is considered a It is set to miss its 2020 climate targets. pioneer in the fight against man-made Germany is now aiming at 2030 targets climate change. But despite a spectacular with its Climate Action Plan 2050, a rise in power generation from renewa­ roadmap to a climate-neutral economy bles, the country’s track record on cut­ by mid-century. But the protracted bat­ ©[hansenn] Fotolia.

12 #Climate and CO2 #Fossil Fuels

Germanwatch Contacts On cleanenergywire.org +49 228 60492-23, [email protected] Patrick Graichen, Agora Energiewende Dossier: +49 30 2844901-10, Mercator Research Institute on Global Commons The energy transition and climate change [email protected] and Climate Change (MCC) +49 30 3385537-201, [email protected] Article: Claudia Kemfert, German Institute for Economic Research (DIW) Climate-Alliance Germany German carbon emissions rise in 2016 despite coal +49 30 89789-663, [email protected] +49 30 7808995-11, [email protected] use drop Fraunhofer ISI Stiftung 2° Factsheets: +49 721 6809 100, [email protected] +49 30 2045 3734, [email protected] Germany’s greenhouse gas emissions and cli- mate targets The Potsdam Institute for Climate Impact When will Germany finally ditch coal? Research (PIK) Reading +49 331 288 25 07, [email protected] Germany’s Climate Action Plan 2050 Agora Energiewende (2016) Eleven Principles for a Greenpeace Germany Consensus on Coal Coal in Germany +49 40 306 183 46, [email protected] Understanding the ’s Emissions Agora Energiewende (2017) The energy transition Trading System Camilla Bausch, Ecologic Institute in the power sector: State of Affairs 2016 +49 30 86880-0, [email protected] Agora Energiewende (2014) The German Energie- WWF Germany wende and its climate paradox Corinna Seide, +49 30 311777-422, [email protected] Fraunhofer ISE (2017) Energy Charts German government (2016) Climate Action Plan 2050 tle over the details of the plan revealed Germanwatch / Climate Action Network (2016) Climate Change Performance Index: Results 2017 it will be a bumpy ride to turn climate ambition into practice, as the country Federal Ministry for the Environment (BMUB) will ultimately need to kick its habit of (2016) Climate Action Plan 2050 burning coal for power production – and say goodbye to petrol and diesel cars.

13 Clean Energy Wire | CLEW 2017

#Energiewende #Society Energiewende – the first four decades

or many observers, the energy government­ reinstated plans to exit nu- Ftransition in Germany began with clear power. A long process deeply rooted Chancellor ’s decision in German history and society led to to phase out nuclear power, following policies that triggered a strong increase in the accident at the Fukushima nuclear renewable energy sources and are now at plant in Japan. But the societal pro- the heart of a move to a low-carbon econ- ject started decades before the Merkel omy. The Energiewende – a full-scale ©[nullplus] iStock.

14 #Energiewende #Society

Contacts On cleanenergywire.org Institute for Applied Ecology (Öko-Institut) Dossier: +49 761 45295 224, [email protected] The history of the Energiewende Heinrich Böll Foundation Factsheets: +49 30 285 34 217, [email protected] “The renewable energy act Milestones of the German Energiewende Green Party The history behind Germany’s nuclear phase-out 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 transformation of society and the Carbon Brief (2016) The history of the Energiewende economy – arose out of enduring grass- roots 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 2017

#Elections & Politics German elections will shape Energiewende for years to come

ermans will elect a new federal gov- national climate obligations will still be Gernment in autumn 2017. Security, major tasks for any new administration. economic stability and refugees are like- Elections in the federal states of North ly to dominate election campaigns, but Rhine-Westphalia, Schleswig-Holstein keeping the Energiewende on a steady and Saarland will be closely watched course and fulfilling Germany’s inter- for indications of the autumn result. ©[Marc-Steffen Unger] Deutscher Bundestag.

16 #Elections & Politics

Abgeordnetenwatch (website on transparency Contacts On cleanenergywire.org in politics) Christian Democratic UnionCDU ( ) +49 40 3176 910 35, [email protected] Dossiers: +49 30 220 70 -143 and -144, [email protected] Prof. Frank Brettschneider, political communication Vote2017 – German elections and the Energiewende Christian Social Union CSU( ) specialist at University of Hohenheim Preview2017 – Outlook for Germany’s Energiewende +49 89 1243 300, [email protected] +49 711 459 24031 Factsheets: Social Democratic Party (SPD) [email protected] German elections ahead: The road to the next Ener- +49 30 25991 300, [email protected] Dr. Klaus Detterbeck, political party scholar at giewende government University of Göttingen Green Party (Grüne) German federalism: In 16 states of mind over the +49 551 39 7218, +49 30 284 42 130, [email protected] Energiewende [email protected] Left Party Die( Linke) +49 30 24009 543, [email protected] Prof. Uwe Wagschal, political scientist at University of Free Democratic Party FDP( ) +49 761 203 9361, +49 30 28 49 58 41, [email protected] [email protected] (AfD) +49 30 26558370, [email protected] Reading German Bundestag (federal parliament) German Bundestag (2016) Facts – The Bundestag at +49 30 227 37171, [email protected] a glance The Federal Agency for Civic Education BPB( ) Wahlrecht.de (2017) Latest polls (federal & state) +49 228 99515-200, [email protected] Berlin Policy Journal (2017) Berlin Observer German Politics (2014) Energy Transition by Convic- Coalition negotiations in the wake of tion or by Surprise? Environmental Policy from 2009 September’s federal elections will be to 2013 crucial to determine the future course of the energy transition. Many areas of the project will require urgent atten- tion by the new government.

17 Clean Energy Wire | CLEW 2017

#COP23 #Climate and CO2 COP23 in Germany puts spotlight on country’s Energiewende ambitions

ermany will be the venue for the will be organised by Fiji, will focus inter- G2017 Climate Change national attention on “climate pioneer” Conference. The November COP23, which Germany’s efforts to put the celebrated ©[Shutter81] Fotolia.

18 #COP23 #Climate and CO2

Jan Kowalzig, Oxfam Germany Contacts On cleanenergywire.org +49 30 45 30 69 712, [email protected] Ottmar Edenhofer, Mercator Research Institute Dossiers: on Global Commons and Climate Change (MCC) Climate-Alliance Germany COP21 – The view from Germany +49 30 33 85 537-201, [email protected] +49 30 7808 995-11, [email protected] The energy transition and climate change Federal Ministry for the Environment, Nature Con- German Climate Consortium (DKK) servation, Building and Nuclear Safety (BMUB) +49 30 7677 1869-4, Articles: +49 30 18 305 2010, [email protected] [email protected] Paris deal fuels German coal exit debate, stirs indus- try concerns Christoph Bals, Germanwatch +49 228 60492-23, [email protected] Reading Germans celebrate climate deal, turn to task ahead Sabine Minninger, Brot für die Welt Climate Action Plan 2050(2016) Website with Factsheets: +49 30 65211 1817, latest documents and process updates Paris climate deal – does Germany get what it [email protected] hoped for? European Council (2015) EU position for the UN cli- The Potsdam Institute for Climate Impact mate change conference in Paris: Council conclusions The making of “Climate Chancellor” Angela Merkel Research (PIK) Controversial climate summit issues – positions in United Nations Global Compact(2015) Special +49 331 288 25 07, [email protected] Germany Edition: A Call to Climate Action Reimund Schwarze, Helmholtz Centre for Environ- Greenpeace (2015) Effects of a partial coal exit mental Research (in German) +49 341 235 1607, [email protected] German government (2016) Climate Action Plan Wuppertal Institute for Climate, Environment 2050 and Energy Myrto-Christina Athanassiou, +49 202 2492-187, [email protected]

Paris Agreement into practice, by shift- ing to a low-carbon economy, and the urgent need to phase out coal.

19 Clean Energy Wire | CLEW 2017

#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 gravitas. transport prowess to another promi­ The German engineer Karl Benz in­ nent industry showcase – the transition vented the first automobile powered by to renewable energy. It’s clear that ex­ an internal combustion engine 130 years tending the Energiewende to transport ago. Today, sales by its carmakers will be crucial in the country’s quest for Daimler-Benz, Volkswagen, BMW, a low-carbon economy, but there is no Porsche, and Audi top Denmark’s consensus on how this should be done. annual GDP. But so far, Germany has Carmakers have lobbied hard – and with ©[Petair] Fotolia.

20 #Transport

Contacts Agency for Renewable Energies (2015) Renewables “Decarbonisation isn’t in the transport sector: Which routes are open? Christian Hochfeld, Agora Verkehrswende happening anywhere in +49 30 700 1435-000, [email protected] BMVI: Electric mobility Andreas Knie, Innovation Center for Mobility and German Institute for Economic Research (2015) the sector. Measures are Social Change (Innoz) Power system impacts of electric vehicles in +49 30 23 88 84-101, [email protected] Germany: Charging with coal or renewables? expensive and intervene Peter Kasten, Institute for Applied Ecology Öko-Institut(2014) Development of an evaluation (Öko-Institut) framework for the introduction of electromobility with our daily life. +49 30 405085 349, [email protected] Thus, it just hasn’t been Oliver Lah, Wuppertal Institute for Climate, On cleanenergywire.org Environment, and Energy +49 30 2887458 16, [email protected] Dossier: pushed by either The energy transition and Germany’s transport sector Werner Reh, Friends of the Earth Germany (BUND) politicians or industry.” +49 30 27586435, [email protected] Factsheets: Energiewende in transportation: Vague goals, Federal Ministry of Transport and Digital Infra­ modest strides Peter Kasten, structure (BMVI) +49 30 18300-7200, [email protected] The role of biofuel and hydrogen in Germany’s Institute for Applied Ecology transport Energiewende Deutsche Umwelthilfe (DUH) +49 30 2400867-20, [email protected] some success – against stricter emis- sions limits, and they risk falling behind the global competition on Reading battery technologies. Consumers are Germany Trade & Invest (2015) Electromobility in also slow on the uptake of electric Germany: Vision 2020 and beyond vehicles, making it unlikely the gov- PricewaterhouseCoopers (2015) Energiewende ernment will reach its target of putting Outlook: Transportation Sector 1 million electric vehicles on German roads by 2020.

21 Clean Energy Wire | CLEW 2017

#Cars BMW, Daimler and VW vow to fight in green transport revolution

n Germany, the birthplace of the dal over the manipulation of emission Iautomobile, three iconic carmakers, tests by Europe’s largest car produc- BMW, Daimler, and VW, are facing the er VW – and facing new and powerful greatest challenge in their history: The competitors in Google, Tesla, Apple, and mobility revolution to create a green Uber – the future of Germany’s horse- transport future. Tarnished by the scan- power proud carmakers in an age of ©[mirpic] Fotolia.

22 #Cars

Contacts Federal Motor Transport Authority Reading +49 461 316-1293, [email protected] Agora Verkehrswende Alix Partners (2016) A watershed moment for the +49 30 700 1435-000, [email protected] German Association of the Automotive Industry automotive industry (VDA) Ferdinand Dudenhöffer, Center Automotive +49-30-897842-124, [email protected] McKinsey&Company (2016) Automotive revolu- Research, University of Duisburg- tion – perspective towards 2030 +49 203 379-1111, Henning Kagermann, National Platform for [email protected] Electric Mobility Deutsche Bank (2014) The future of Germany as an +49 89 52 03 09-43, [email protected] automaking location Stefan Bratzel, Center of Automotive Management, University of Applied Sciences Bergisch Gladbach BMW Group (2016) Global Automotive Supplier +49 2202 285 77-0, [email protected] +49 89 382-72652, wieland.bruch@.de Study Peter Mock, The International Council on Clean Daimler Transportation (ICCT) +49 711 17-76409, On cleanenergywire.org +49 30 847 129-102, [email protected] [email protected] Dossier: Nicolai Müller, McKinsey&Company Volkswagen The Energiewende and German carmakers +49 211 136-4516, +49 5361 9-77639, [email protected] [email protected] Factsheets: Reluctant Daimler plans “radical” push into new Wolfgang Bernhart, Roland Berger mobility world +49 711 3275-7421, [email protected] Early e-car starter BMW plans new mobility sprint

decarbonisation, self-driving vehicles, and car sharing is less certain than ever. But experts warn it is far too early to write off the powerhouses of auto innovation in the global race to master the future of mobility.

23 Clean Energy Wire | CLEW 2017

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

he question is no longer whether primary sources of power are proving TGermany’s future will be an immense challenge. Legal hurdles, nuclear-free – or even when, since the decommissioning technicalities, and government is committed to complet- above all, the question of where to store ing the phase-out by 2022. But the the radioactive waste, are the main logistics of pulling the plug on what issues at hand. In 2016, an agreement was until recently one of the country’s between plant operators and the state ©[Thomas Lehmann] iStock.

24 #Nuclear phase-out

Contacts Reading Wuppertal Institute for Climate, Environment and Energy (2007) Comparison of Different Decommis- Wolfgang Irrek, Ruhr West University of German Institute for Economic Research (2015) sioning Fund Methodologies for Nuclear Installations Applied Sciences German nuclear phase-out enters the next stage: +49 208 88254-838, [email protected] electricity supply remains secure On cleanenergywire.org Energiewerke Nord GmbH (EWN) Helmholtz Centre for Environmental Research +49 38354 4-8030, [email protected] (2015) Germany’s decision to phase out nuclear Dossier: power is fundamentally sensible from an econom- Federal Office for Radiation Protection (BfS) The challenges of Germany’s nuclear phase-out ic perspective +49 30 18 333-11 30, [email protected] Articles: Federal Office for Radiation Protection (BfS) Becker Bückner Held firm (BBH) German utilities buy out of nuclear waste liability Online information on nuclear safety and nuclear +49 30 611 28 40-179, [email protected] for 23.6 bln euros waste management Green Budget Germany (FÖS) Germany’s constitutional court backs speedy +49 30 7623991-41, [email protected] Brunnengräber et. al. (2015) Nuclear waste govern- nuclear exit ance – an international comparison Federal Ministry for the Environment, Nature Con- Factsheets: BBH (2014) Financial provisions in the nuclear servation, Building and Nuclear Safety (BMUB) The history behind Germany’s nuclear phase-out +49 30 18 305 2010, [email protected] sector – Possible risks of the status quo und options for reform (in German) What to do with the nuclear waste – the stor- Forschungszentrum Jülich age question BMWi / Warth & Klein Grant Thornton (2015) +49 2461 61-2388, [email protected] Nuclear clean-up costs Nuclear clean-up provisions evaluation (in German) German Institute for Economic Research (DIW) Securing utility payments for the nuclear clean-up +49 30 89789-252, [email protected] Legal disputes over the nuclear phase-out at least established financial clarity: In „In 2050, when the final repository is ready, addition to paying for the decommis- I will be 98 years old. So I sioning of their plants, operators will am not sure fund the disposal of nuclear waste with I will live to see it happen, but I up to 23.6 billion euros. The rest of certainly feel the yet unknown bill will be footed by taxpayers. that it is my responsibility to organise this now.“ Barbara Hendricks, Environment Minister 25 Clean Energy Wire | CLEW 2017

#Renewables Maturing renewable industries navigate risks and new opportunities

enewable energy sources are the have already pushed renewables’ share Rmost fundamental ingredient of to around a third of Germany’s power Germany’s low-carbon future, and cer- consumption. But their share of the tainly the Energiewende’s most visible country’s primary energy needs remains expression today. The roll-out of solar at a paltry 12.6 percent. panels, wind turbines at sea and on This is why renewables still have a land, as well as biomass installations, long way to go in Germany, as eventu- ©Vattenfall.

26 #Renewables

Contacts Volker Quaschning, University of Applied Reading Sciences Berlin German Renewable Energy Federation (BEE) +49 30 5019-3656, [email protected] Federal Ministry for Economic Affairs and Energy +49 30 275 8170 16, [email protected] (BMWi) (2015) Renewable Energy Sources in Fig- Federal Ministry for Economic Affairs and ures: National and International Development German Wind Energy Association (BWE) Energy (BMWi) +49 30 212341-251, [email protected] +49 30 18 615 6132, [email protected] International Renewable Energy Association (2015) Renewable Energy Prospects: Germany Federal Association for Renewable Energy Research Association +49 228 81002 57, [email protected] +49 30 288 7565 72, [email protected] Fraunhofer Institute for Solar Energy Systems (ISE) (2017) Recent Facts about in Germany German Solar Industry Association Fraunhofer Institute for Wind Energy and Energy +49 30 29 777 88-30, [email protected] System Technology School of Finance / UN Environment Pro- +49 471 14290-205, gramme (2016) Global Trends in Renewable Energy a [email protected] Investment “Renewables are no longer Fraunhofer Institute for Systems and Innovation German Institute for Economic Research (DIW) Research ISI (2015) Employment in the renewable energy sector niche product but have become +49 721 6809-100, [email protected] in Germany: expansion and operation, today and tomorrow (in German) Citizens’ Energy Alliance (BBEn) the strongest and largest pillar +49 30 3088 1789, [email protected] On cleanenergywire.org German Renewable Energies Agency (AEE) of Germany’s power supply.” +49 30 200 535 52, Dossier: Chancellor Angela Merkel [email protected] Bioenergy in Germany Factsheets: ally they will have to power transport already employs hundreds of thou- Bioenergy’s public acceptance problem and heating as the country phases sands of people. After a turbulent Bioenergy in Germany – facts and figures on devel- out the burning of coal, oil, and natu- history with spectacular booms opment, support and investment ral gas to reach its climate targets. and busts, many companies now Germany’s energy consumption and power mix This means plenty of challenges hope a global energy transition in charts lie ahead for Germany’s rapidly will bring new growth opportuni- Volatile but predictable: Forecasting renewable evolving renewable industry, which ties abroad. power generation

27 Clean Energy Wire | CLEW 2017

#EEG2016/Law Germany’s energy transition revamp stirs controversy over speed, participation

he German Renewable Energy Act down the costs of installing renewable T(EEG) is the mechanism that has power capacity. Lawmakers now say made the energy transition possible so the sector is mature enough to take the far. It guaranteed renewable energy training wheels off and be exposed to producers high returns on invest- market forces. Major reform of the EEG ment, which in turn helped to bring aims to do just that, reducing costs for ©[Giso Bammel] Fotolia.

28 #EEG2016/Law

Contacts Matthias Lang, Bird & Bird / German Energy Blog Deutsche Windguard Statistics for wind energy +49 211 2005 6293, development Lars Holstenkamp, Energion, Leuphana University [email protected] +49 4131 677-1931, [email protected] Agora Energiewende (2016) Energiewende: What Volker Quaschning, University of Applied Sciences do the new laws mean? Fraunhofer IWES +49 30 5019-3656, [email protected] +49 561 7294-319, [email protected] On cleanenergywire.org Rhineland-Westphalia Institute for Economic Reading Research Dossier: +49 201 8149 213, [email protected] BMWi (2015) Renewable Energy Sources Act, 2014 The reform of the Renewable Energy Act (unofficial English translation) Friends of the Earth Germany (BUND) Factsheets: +49 30 2 75 86-425, [email protected] BMWi (2016) Information on new auction design for EEG reform 2016 – switching to auctions for renew- renewables ables BMWi (2015) Revision amending the Renewable Reactions to the Renewable Energy Act reform 2016 and all expe - Energy Sources Act – Key points “Economic logic Defining features of the Renewable Energy Act (EEG) Craig Morris and Arne Jungjohann (2016) Energy riences from other countries Democracy: Germany’s Energiewende to Renewables the largest Arrhenius Institute (2014) Growth trajectory of show: In tenders renewable power (in German) bidders have an advantage.” German Renewable Energy Federation (2015) Factsheet: Renewables from Germany Lars Holstenkamp, Leuphana University consumers. At the same time, the new direction. The renewable lobby and legislation will limit how much new citizens’ energy groups say it will result renewable capacity can be built each in Germany missing its climate targets year. But the plans are hugely con- and betray the collective spirit of the troversial. Big energy companies and Energiewende in an effort to appease industry see it as a step in the right big business.

29 Clean Energy Wire | CLEW 2017

#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.

30 #Electricity market

Contacts On cleanenergywire.org Felix Christian Matthes, Öko-Institut Dossier: +49 30 405085 380, [email protected] “We don’t believe that The power market and the energy transition , German Association of Local Factsheets: there will be incentives Utilities (VKU) +49 30 58580 202, [email protected] Germany’s new power market design Europe’s largest electricity market set to split for investors to build German Association of Energy and Water Indus- tries (BDEW) German draft power market law sticks to lignite new, flexible power +49 30 300 199 1160, [email protected] reserve Capacity markets around the world Lydia Bischof, Energy Brainpool plants that will be +49 30 7676 54-23, How can Germany keep the lights on in a renewable [email protected] energy future? Why power turn negative needed in Germany to Hamburg Institute of International Economics (HWWI) +49 40 34 05 76 115, [email protected] accompany the expansion of renew­ Reading able energy.” European Commission (2016) The economic impact of enforcement of competition policies on the func- Frank Brachvogel, BDEW 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

31 Clean Energy Wire | CLEW 2017

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

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

32 #Cost & Prices

Contacts Agora Energiewende (2014) Comparing electricity prices for industry Institute of Economic Structures Research (GWS) +49 541 40933-100, [email protected] Frankfurt School UNEP (2015) Global trends in renewable energy investment 2015 Institute for Economic Research (Ifo) +49 89 922 412 18, [email protected] On cleanenergywire.org “Perceptions Federation of German Industries (BDI) [of the Energiewende] +49 30 2028 1565, [email protected] Dossiers: Sebastian Bolay, Energy Expert, German Chamber Energiewende effects on power prices, costs of Commerce and Industry and industry varied widely depending +49 30 20308-2202, [email protected] The energy transition’s effect on jobs and business Kirsten Best-Werbunat, McKinsey & Company Factsheets: on the size of the +49 211 136 4688, [email protected] Industrial power prices and the Energiewende What business thinks of the energy transition business, their location Reading What German households pay for power ” Ecofys/Fraunhofer ISI (2015) Electricity Costs of or industrial sector. Energy Intensive Industries – An International DIHK Energy Transition Barometer, 2015 Comparison Destatis (2015) Long-term energy price trends Centre for European Economic Research (2015) Social Implications of Green Growth Policy from the of the nuclear phase-out and the move Perspective of Energy Sector Reform and its Impact into renewables could drive some man- on Households ufacturing abroad. They say this could IHS (2014) A more competitive Energiewende: take a toll on the car industry and other Securing Germany’s global competitiveness in a new pillars of the economy. But other sec- energy world tors hope Energiewende technologies will secure future export success.

33 Clean Energy Wire | CLEW 2017

#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 legisla- help to regulate the grid within sec- tion and business models to keep pace. onds with high accuracy, smart grids ©[WEMAG AG] Batteriespeicher Schwerin Akkuhalle.

34 #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 – Innovative

+49 721 608-47414, [email protected] through Utilization of CO2 (in German) Fraunhofer ISE BMWi (2015) Federal report on energy research (in +49 761 4588-5147, German) [email protected]

Fraunhofer IWES On cleanenergywire.org +49 561 7294-319, [email protected] Dossier: Fraunhofer ISI New technologies for the Energiewende +49 721 6809 100, [email protected] Factsheets: Association for Electrical, Electronic & Information Technologies of Energiewende Technologies (VDE) Combined heat and power – an Energiewende +49 69 6308-461, [email protected] cornerstone? Federal Ministry of Education and Research (BMBF) How can Germany keep the lights on in a renewable +49 30 18 57-5050, [email protected] energy future? 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 “What we will have is an electricity system that has 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 35 Clean Energy Wire | CLEW 2017

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

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

36 #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 German Institute for Economic Research (DIW) in Germany: expansion and operation – now and in +49 30 89789-252, [email protected] the future, third report on gross employment Sebastian Bolay, Chambers of Commerce and Industry (DIHK) On cleanenergywire.org +49 30 20308 2202, [email protected] Dossier: Institute for the Study of Labour (IZA) +49 228 3894 223, [email protected] The energy transition’s effect on jobs and business Institute for Employment Research (IAB) Factsheet: +49 911 179 1946, [email protected] Where the Energiewende creates jobs 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) +49 30 364 097 02, [email protected] car industry. Changes are so rapid that researchers have trouble keeping track. How many jobs the drive to renewables -intensive, and the energy transition as a whole will “Installation is extremely labour eventually create remains hard to gauge so carpenters and craftsmen are needed and hinges on many political and individ- .” ual decisions in coming decades. for every building that’s retrofitted

Christian Noll, German Industry Initiative for Energy Efficiency 37 Clean Energy Wire | CLEW 2017

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

ermany’s utilities face an uncertain world of centralised­ generation and Gfuture in the new energy world. Ger- large-scale investment, were eroded. many’s ambitious transition to renew- Top dogs E.ON and RWE have responded able energy left the traditional utilities to the challenge by splitting them- that have dominated the market for selves in two, by separating renewable decades out in the cold. Their business businesses from conventional pow- models, based on the “old” energy er generation. Vattenfall has sold its ©[Bengt Lange] Moorburg Power Plant 11, Vattenfall.

38 #Utilities

German Association of Energy and Water Indus- Reading “We have seen a kind of worst tries (BDEW) +49 30 300 199-1160, [email protected] Thomson Reuters Practical Law (2014) Electricity regulation in Germany: Overview case scenario materialise for the RWE AG +49 201 12-22088, stephanie.schunck@.com RWE (2015) Paving the way for growth with contin- ” ued focus on financial discipline big energy companies. E.ON +49 201 184-4224, [email protected] RWE (2014) Transition of the German utilities: Thorsten Lenck, Energy Brainpool increasing the emphasis on the service component Vattenfall of supply +49 30 8182-2320, [email protected] Contacts E.ON (2015) Empowering customers. Shaping mar- EnBW kets. Capital market story Thorsten Lenck, Agora Energiewende +49 721 6314320, presse@.com +49 30 7001435-134, Bundeskartellamt (2014) Energy monitoring report [email protected] innogy 2014 (in German) +49 201 12-17441, [email protected] Helmuth Groscurth, Arrhenius Institute for Energy Greenpeace (2015) The future of large utilities and Climate Policy Uniper (in German) +49 40 3708 4420, [email protected] +49 211 4579-3570, [email protected] Simon Skillings, Trilemma UK Mark Lewis, Barclays Utilities Research On cleanenergywire.org +44 1926 842016, [email protected] +33 1 4458-3646, [email protected] Dossier: Utilities and the energy transition

Factsheets: German brown coal operations, state- fast-changing­ energy markets is far Small, but powerful: Germany’s municipal utilities owned EnBW is redoubling efforts to from clear. Digitalisation will herald E.ON shareholders ratify energy giant’s split become greener, and smaller municipal new industry upheavals, and smaller RWE’s plans for new renewable subsidiary utilities also look for alternative busi- players like Sonnen and Next Kraft- Securing utility payments for the nuclear clean-up ness models. werke enter the fray. Experts say it Despite these drastic steps, the remains to be seen if the utilities can utilities’­­­ future role in Germany’s innovate their way out of the crisis.

39 Clean Energy Wire | CLEW 2017

#Grid Connecting up the Energiewende

ermany has to update its network to power can be as big a problem for the Gcope with decentralised, fluctuating stability of the grid as too little. And supply as the country shifts to renew- not everyone is in favour of building ables. new power lines to carry electricity Rapidly-growing wind power 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.

40 #Grid

TransnetBW (grid operator) Contacts On cleanenergywire.org +49 711 21858-3567 [email protected] Federal Network Agency (Bundesnetzagentur) Dossier: +49 228 14 9921, [email protected] Chambers of Commerce and Industry (DIHK) +49 30 20308 – 1607, [email protected] The energy transition and Germany’s power grid Andreas Jahn, Regulatory Assistance Project (RAP) Factsheets: +49 30 700 1435 421, [email protected] Set-up and challenges of Germany’s power grid Reading Lorenz Jarass, RheinMain University of Applied Setting the power price: The merit order effect Sciences Federal Network Agency (2014) Grid expansion +49 611 54101804, [email protected] in Germany. What you need to know Re-dispatch costs in the German power grid Loop flows: Why is wind power from northern Ger- Institute of Energy Economics at the University of BMWi (2015) Grids and Grid Expansion – Ministry many putting east European grids under pressure? Cologne (EWI) website in English +49 221 27729 108, Germany’s electricity grid stable amid energy [email protected] German Institute for Economic Research (DIW) transition (2015) Electricity grids and climate targets: New Power grid fees – Unfair and opaque? 50Hertz Transmission (grid operator) approaches to grid planning +49 30 5150 3417, [email protected] How can Germany keep the lights on in a renew­able DIW (2014) Beyond the “Grid-Lock” in electricity energy future? TenneT (grid operator) interconnectors: The case of Germany and Poland Volatile but predictable: Forecasting renewable +49 921 50740 4045, [email protected] Pentalateral Energy Forum (2015) Generation power generation Amprion (grid operator) adequacy assessment Germany’s renewable generation peaks remain +49 231 5849 13785, [email protected] shrouded in data fog Grid development plans of the four German trans- mission grid operators (TSOs) Bundesnetzagentur (2014) Monitoring report 2014 government works with regional states (in German) to make the Energiewende a success. lines between north Meanwhile, other possible solutions are “As long as the new power floated, such as a decentralised power completed, the problem supply, demand-side management, and south Germany are not power storage, or splitting the German only worsen.” power market. of a lopsided system will

Andreas Jahn, Regulatory Assistance Project (RAP)41 Clean Energy Wire | CLEW 2017

#Finance Financing the future of energy

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 over tutional financiers are replacing some the last 10 years, most of it from local small-scale investors. Larger projects and national investors. Relatively high such as offshore wind play a more im- yields, a stable cash flow and a relia- portant role as banks, insurance firms ble public framework have made the and investment funds increasingly look ©[Marina Lohrbach] Fotolia.

42 #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) Relatively +49 30 2021-1300, [email protected] high yields, Institute for Energy Economics and Financial German Insurance Association (GDV) Analysis (2015) The Case for Divesting Coal from the a stable cash flow +49 30 2020-5903, [email protected] Norwegian Pension Fund Susan Dreyer, Carbon Disclosure Project, Norton Rose Fulbright (2013) European renewable and a reliable public German Chapter energy incentive guide – Germany +49 30 629 033 160, [email protected] framework KfW Group (2016) Overview of “Energy and the have made Nathalie Cahn, KfW Group Environment” support programmes the Energiewende +49 69 74 31-20 98, [email protected] a Alexander El Alaoui, Germanwatch very +49 30 28 88 356-84, [email protected] attractive green Germany Trade and Invest (GTAI) investment +49 30 200 099-173, www.gtai.de opportunity. Association of German Banks (BDB) +49 30 1663-1201, [email protected] Frankfurt School – UNEP Collaborating Centre for for carbon-free investment. Funding Climate & Sustainable Energy Finance by the public banking system is also +49 69 154008-604, [email protected] playing an increasingly important role. The Energiewende will continue to be financed by a broad mix of investors, but is part of global finance rather than a German singularity.

43 Clean Energy Wire | CLEW 2017

#Efficiency Taming the appetite for energy

t will take more than just making the matically increasing efficiency. The po- Ipower supply green to achieve climate tential is huge and so far largely untapped,­ targets. Germany must also tackle de- which is why efficiency has been dubbed mand and consume less energy. In the the “sleeping giant” of the Energiewende. past, energy use only fell significantly The government’s Climate Action Pro- when the economy took a hit. Now the gramme, designed to get Germany back on country wants to prove it is possible to track for its 2020 climate goals, suggests decouple growth and emissions by dra- that increasing energy efficiency can bring ©[Ingo Bartussek] Fotolia.

44 #Efficiency

Contacts Wolfgang Irrek, Ruhr West University of Applied Agora Energiewende (2017) Heat Transition 2030: Sciences Key technologies for reaching the intermediate and Matthias Zelinger, German Engineering +49 208 88254-838, [email protected] long-term climate targets in the building sector Federation (VDMA) +49 69 6603 1351, [email protected] Carsten Petersdorff, Ecofys +49 30 29773579-0, [email protected] On cleanenergywire.org Irmela Colaço, Friends of the Earth Germany (BUND) +49 30 275 86-436, [email protected] German Energy Agency (Dena) Dossier: +49 30 726 165 657, [email protected] Stefan Thomas, Wuppertal Institute for Climate, The Energiewende and Efficiency Environment, and Energy Federal working group for the renewal of old Factsheets: +49 202 2492 143, [email protected] buildings +49 30 48 49 078-55, [email protected] Details of new Climate Action Programme Wolfgang Eichhammer, Fraunhofer ISI Homes for the Energiewende +49 721 6809 158, Institute for Housing and Environment [email protected] +49 6151 2904-0, [email protected] Germany’s greenhouse gas emissions and climate targets Christian Noll, German Industry Initiative for Energy Efficiency (DENEFF) Reading Combined heat and power – an Energiewende +49 30 36 40 97 01, [email protected] cornerstone? BMWi (2014) National Action Plan on Energy Effi- Volker Breisig, PricewaterhouseCoopers (PwC) ciency (NAPE) +49 211 981 4428, [email protected] DENEFF (2014) Sector monitor energy efficiency (English summary) achieve German Institute for Economic Research (2014) “Germany can more emissions cuts – 25 to 30 million Improved energy efficiency: Vital for energy transi- tion and stimulus for economic growth targets tonnes per year – than any other its emission measure. But saving energy on a large Agora Energiewende (2014) Benefits of Energy energy is scale – by insulating buildings, changing Efficiency on the German Power Sector much fasterif behaviour and introducing many new and International Energy Agency (2015) Energy Effici­ ” often expensive technologies – requires ency Market Report 2015 used more efficiently. everyone’s participation and has proven a hard sell so far. Robert Pörschmann, BUND

45 Clean Energy Wire | CLEW 2017

#Citizens’ Energy Germany between citizens’ energy & nimbyism

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

46 #Citizens’ Energy

Wuppertal Institute for Climate, Environment Contacts On cleanenergywire.org and Energy German Cooperative and Raiffeisen Confedera- +49 202 2492 187, Dossier: tion (DGRV) [email protected] The People’s Energiewende +49 30 72 62 20-984, [email protected] Factsheets: Association of Energy Consumers Reading +49 170 44 88 606, [email protected] Citizens’ participation in the Energiewende German Cooperative and Raiffeisen Confedera- Polls reveal citizens’ support for Energiewende Ortwin Renn, Chair for Engineering and Environ- tion (2015) Energy Cooperatives – Results of the mental Sociology, University of Facts and figures on the social impact of the Ener- DGRV-Survey +49 711 6858 3970, giewende [email protected] Leuphana University (2015) On the state of energy What German households pay for power cooperatives in Germany (in German) Heinrich Degenhart, Professor of Banking and Finance, Leuphana University Lüneburg Leuphana University (2014) Market reality of +49 4131 677 1930, [email protected] citizens’ energy and possible consequences of regu- latory changes (in German) Harald Welzer, FuturZwei Foundation +49 30 755 421 757, [email protected] Association of German Engineers (2014) Loca- tion-related problems of acceptance of industrial Institute for Advanced Sustainability Studies (IASS) and technology policy (in German) +49 331 28822-340, [email protected] MAGKS / Andreas Ziegler (2015) On the relevance “If people participate Alliance for Citizens’ Energy (BBEn) with of ideological identification and environmental val- +49 30 3088 1789, [email protected] ues for beliefs and attitudes toward climate change: their own money, An empirical cross country analysis for An example of an energy-friendly suburb, in Frei- example in a wind or solar put citizens off. At the same time, burg: www.vauban.de important Energiewende projects – Arne Jungjohann and Craig Morris (2016) Energy power plant in their area, such as grid extension and wind Democracy: Germany’s Energiewende to Renewables parks – have run into resistance, University of Stuttgart(2016) How society perceives they will also support it. requiring new ways to keep the public the Energiewende (in German only) ” on board. Manfred Fischedick, Wuppertal Institute

47 Clean Energy Wire | CLEW 2017

#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 changes education. As some farmers earn more and their knock-on effects don’t please from their “energy harvest” than everybody: there are winners and losers traditional crops and citizens rethink when a society and economy undergo ©[Sunny studio] Fotolia.

48 #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) Location- related problems of acceptance of industrial and Harald Welzer, Director FuturZwei Foundation technology policy +49 30 755 421 757, [email protected] “Technology and renewable German Institute for Economic Research (2015) The 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 Günther Bachmann, demand Jeremy Rifkin(2011) The Third Industrial Revolution Sustainability Council Institute for Social Movement Studies(2016) Engagement in the Energiewende (in German)

On cleanenergywire.org Dossier: The social impact of Germany’s energy transition

Factsheet: such sweeping reconstruction. Facts and figures on the social impact of the Ener- While some jump aboard, trans- giewende forming their homes into small solar power stations, others gripe about the “ugliness” of wind turbines and photovoltaic panels.

49 Clean Energy Wire | CLEW 2017

#Cities Energy transition to transform German cities

erman cities, counties and munic- expands its focus from the power sec- Gipalities all have their role to play tor to heating, buildings and mobility, in the Energiewende. With the shift to population centres will be where crucial a decentralised energy system, renew- changes take place. able power is increasingly generated in, Germany will only meet its climate and often owned by, local communi- targets if localities implement their own ties. Urban centres are where much of energy transitions – which can also bring the country’s energy is distributed and economic benefits. They have opportu- consumed. And as the energy transition nities to take different paths but must ©[Chris Hadfield] NASA.

50 #Cities

Contacts Tobias Männel, Fraunhofer Institute for Industrial State government of Baden-Wurttemberg (2015) Engineering (IAO) Nachhaltige Mobilität für Alle (in German only) Philipp Prein, German Energy Agency (dena) +49 713 1504 1142, +49 30 726 165 641, [email protected] [email protected] State government of Berlin (2016) Berlin Energie- wende law (in German only) Alexander Knebel, Renewable Energies Association of German Cities Agency (AEE) +49 30 377 11-130, [email protected] +49 30 200 535 52, On cleanenergywire.org [email protected] Dossier: Reading Katrin Dziekan, Federal Environment Agency (UBA) The energy transition and Germany’s transport +49 34 021 036 555, [email protected] BMUB (2016) Climate Action Plan 2050 (executive sector summary in English) Marc Elxnat, German Association of Towns and Municipalities (DStGB) Renewable Energies Agency (AEE) (2016) Föder- +49 30 773 072 11, [email protected] al-Erneuerbar: Bundesländer mit neuer Energie (in German only) Weert Canzler, Research Group Science Policy Studies, Berlin Social Science Center (WZB) A report (2013) authored by 25 mayors of German +49 30 254 912 02, [email protected] cities and towns (sponsored by the German Council for Sustainable Development) Mit starken Kommu- nen die Energiewende zur Erfolgsstory machen (in German only) National Platform for Cities of the Future (2015) also overcome local challenges. Germa- Zukunftsstadt – Strategische Forschungs- und Inno- ny’s municipalities, many of which are vationsagenda (in German only) chronically underfunded, must negoti- IPCC (2014) Climate Change: Implications for Cities – ate the complex interplay between EU, Key Findings from the Intergovernmental Panel on federal, and state structures that set Climate Change, Fifth Assessment Report overarching goals and provide funding, Philipp Schönberger et al. (2016) Why Subnational in order to apply their own ideas, agen- Actors Matter: The Role of Länder and Municipali- cy, and expertise to shape their own ties in the German Energy Transition (in Germany’s Energy Transition: A Comparative Perspective) green future.

51 Clean Energy Wire | CLEW 2017

#Digitalisation Digitalisation ignites new phase in ener- gy transition, but also poses risks Digitalisation ignites new phase in energy transition, but also poses risks

he rapid spread of digital technolo- edented ways, such as in virtual power Tgies in the energy sector is about to stations. The technology will be crucial revolutionise the field once again. The for running a more flexible power system roll-out of smart meters among energy increasingly based on decentralised and providers and consumers is the first step variable renewable electricity production, to create smart grids capable of efficiently and for integrating transport and heating matching supply and demand in unprec- into the electricity system. Intelligent ©BDEW e.V.

52 #Digitalisation

Contacts Reading Hendrik Zimmermann, Germanwatch BMWi (2016) The digitisation of the energy +49 30 2888 356-72, transition [email protected] Centre for European Economic Research (ZEW) Fabian Reetz, Stiftung Neue Verantwortung (2016) Digitisation in the electricity industry pro- +49 30 8145 0378 95, [email protected] ceeds at too slow a pace Trianel German Association of Energy and Water Indus- +49 241 413 20-466, [email protected] tries (BDEW) (2016) The digital energy economy (in German) Association of Energy Market Innovators (bne) Karsten Wiedemann, pwc business consultancy (2016) Germany’s utilities +49 30 400 548 18, [email protected] turn digital (in German) Next Kraftwerke European Commission (2016) Europe’s Digital +49 228 200 858 55, Progress Report [email protected] Agora Energiewende (2016) Energiewende: Roman Zurhold, Digital Energy World Plat- What do the new laws mean? form (dena) +49 30 726165 784, [email protected] Project Enera +49 441 4805 5118, [email protected] Philipp Massier, Centre for European Economic information processing of “Big Data”, Research (ZEW) +49 621 1235 332, [email protected] rather than large-scale power plants, is poised to become the yardstick for busi- Felix Hasse, pwc ness success in the sector, enabling a new +49 89 5790-5810, [email protected] class of players to conquer the field. But the technology also raises concerns about data privacy, and the risk of cyberattacks.

53 Clean Energy Wire | CLEW 2017

#International #Energy Union #Security Energiewende impacts EU neighbours and shapes foreign policy

ermany’s energy transition began Energy is also inseparable from Ger- Gas a lonely expedition, but rapidly man foreign policy beyond the EU, as the impacted markets in neighbouring coun- country still relies heavily on imports tries. The country had to learn it cannot to feed its energy appetite. Germany’s reach its goals independently and needs shift to renewables will loosen these to cooperate in areas such as power grids, ties, with uncertain consequences for trade, and research. international security. ©[Lulla] Fotolia.

54 #International #Energy Union #Security

Wolfgang Ischinger, Ambassador / Chairman of Contacts On cleanenergywire.org the Munich Security Conference (MSC) Nikolas Wölfing, Centre for European Economic +49 89 37979 4921, [email protected] Dossiers: Research (ZEW) Germany’s energy transition in the European +49 621 1235 217, [email protected] Stiftung Neue Verantwortung, Project “Energie- wende Foreign Policy” context Georg Zachmann, Bruegel (Brussels think tank) +49 30 8145 0378 80, [email protected] The Energiewende and its implications for interna- +32 2 227 4288, [email protected] tional security Severin Fischer, Center for Security Studies, ENTSO-E (network of European electricity ETH Zurich Factsheets: grid operators) +41 44 63205 31, [email protected] +32 2 741 09 50, [email protected] Understanding the European Union’s Emissions Trading System Hans-Josef Fell, Green Party / Energiewende – Germany is not alone [email protected] Reading BMWi (2015) Joint Declaration for Regional Germany’s energy consumption and power mix Kirsten Westphal, German Institute for Internation- in charts al and Security Affairs (SWP) Cooperation on Security of Electricity Supply in the Capacity markets around the world +49 30 88007-0, [email protected] Framework of the Internal Energy Market World Energy Council /Prognos (2015) Security of Loop flows: Why is wind power from northern Ger- Friedbert Pflüger, Department of War Studies, many putting east European grids under pressure? King’s College London Supply: A pan-European approach Germany’s dependence on imported fossil fuels +44 20 7848 3202, [email protected] Heinrich Böll Stiftung (2014) Germany’s energy transition: A blueprint for European ? SWP (2012) Globalising the German energy transition

The implications of a low-carbon future reach well beyond ques- tions of supply security. If Germany is to make its energy transition a success, it could have profound geopolitical repercussions across the globe. Clean Energy Wire is a joint initiative of Stiftung Mercator and the European Climate Foundation.55 www.cleanenergywire.org | @cleanenergywire

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