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Energy in Germany

Basic facts about Germany (Joyce)


Germany is the largest national economy in Europe, the fourth-largest by nominal GDP
in the world, and fifth by GDP (PPP). In 2017, the country accounted for 28% of the euro
area economy.1
Population as of July 2016: 80,722,792
Size: 357,022 sq km (slightly smaller than the US State of Montana)
Government type: Federal parliamentary republic, 16 states

Energy and Politics in Germany


The question of finite resources was already a conversation in Germany in 1900 - a
question raised by Max Weber. Since then, a lot has happened in Germany (e.g. World
Wars 1 & 2, the reunification of East and West) to foster the kind of government, culture,
and politics it has today. The environment is a huge factor in government and individual
decisions in 1971, the chancellor created the German Advisory Council on the
Environment (SRU), which advises the German government in ecological matters and
publishes an annual report
Germanys international targets
In signing the Kyoto Protocol in 1997, Germany undertook to reduce its
greenhouse gas emissions by 21 percent compared with 1990 levels by 2012.
Climate Protection Programme
Germany signed the Paris agreement in 2015, committing itself to limit global
warming to well under 2degC
promised some of the most aggressive emission cutsby 2020, a 40
percent cut from 1990 levels, and by 2050, at least 80 percent.
Germany is a member of the European Union, so energy policy is determined
within broad EU guidelines. EU heads of state committed to reduce GHG
emissions by 20% by 2020, and at least 40% by 2030
Integrated Energy and Climate Programme
Germany is juggling a complex, politically contested energy mix and is heavily
dependent on outside energy sources. Imported pipeline gas comes mostly from Russia,
the Netherlands and the United Kingdom. The more Germany transitions to Renewable
energy, the more it might become reliant on Russia which right now is already in
dispute

Energy and Economy in Germany:


Germany has a social market economy characterised by a highly qualified labor force, a
developed infrastructure, a large capital stock, a low level of corruption and a high level
of innovation.
Germany is the world's fifth largest consumer of energy

1
http://www.imf.org/en/News/Articles/2017/07/05/na070717-germany-spend-more-at-home
Germany has been called "the world's first major renewable energy economy," 2 because
of the close to full dependence of Germany on Renewable Energy (this movement is
called the energiewende, to be discussed later).
Natural resources: Germany is rich in timber, potash, salt, uranium, nickel, copper and
natural gas. Energy in Germany is sourced predominantly by fossil fuels (50%), followed
by nuclear power second, then gas, wind, biomass (wood and biofuels), hydro and solar.
Germany is the leading producer of wind turbines in the world.
The German soil is relatively poor in raw materials. Only lignite (brown coal) and potash
salt (Kalisalz) are available in significant quantities. Oil, natural gas and other resources
are, for the most part, imported from other countries.
Energy mix:

Resource 2016

Gas 12.1%

Brown Coal 23.1%

Stone Coal 17%

Lignite 23.1%

Nuclear 13.1%

Renewables 29%

Wind onshore 10.5%

Wind offshore 1.95%

Hydro power 3.2%

Biomass 7%

Solar 5.9%

Waste 0.9%

Oil 0.9%

Others 4.3%

2
Jane Burgermeister, Germany: The World's First Major Renewable Energy Economy, available at
http://www.renewableenergyworld.com/articles/2009/04/germany-the-worlds-first-major-renewable-
energy-economy.html (last accessed Sep. 4, 2017).
Commented [1]: https://www.bgr.bund.de/EN/Themen/
Energie/Bilder/EnergyStudy2016/ene_import_depende
ncy_2015_g_en.html;jsessionid=5963BC65D03BB13D
5607174CAD567021.2_cid284?nn=1548106

Related laws (Liz)

1. Basic Law for the Federal Republic of Germany

Article 15 - Socialisation
Land, natural resources, and means of production may, for the purpose of socialisation,
be transferred to public ownership or other forms of public enterprise by a law that
determines the nature and extent of compensation. With respect to such compensation
the third and fourth sentences of paragraph (3) of Article 14 shall apply mutatis
mutandis.

Article 20a - Protection of the natural foundations of life and animals


Mindful also of its responsibility toward future generations, the state shall protect the
natural foundations of life and animals by legislation and, in accordance with law and
justice, by executive and judicial action, all within the framework of the constitutional
order.

Article 74 - Matters under concurrent Legislative powers


Concurrent legislative power shall extend to the following matters:
11. the law relating to economic matters (mining, industry, energy, crafts, trades,
commerce, banking, stock exchanges and private insurance), except for the law on shop
closing hours, restaurants, game halls, display of individual persons, trade fairs,
exhibitions and markets;
15. the transfer of land, natural resources, and means of production to public ownership
or other forms of public enterprise;

2. Other laws:

European Climate and Energy Framework 2030


The 2030 climate and energy framework sets three key targets for the year 2030:
- At least 40% cuts in greenhouse gas emissions (from 1990 levels)
- At least 27% share for renewable energy
- At least 27% improvement in energy efficiency

The framework was adopted by EU leaders in October 2014.

Renewable Energy Sources Act


The Renewable Energy Sources Act (EEG) is intended to advance the development of
energy supply facilities driven by self-renewing sources. The goal is to increase the
percentage of renewable energies in electricity consumption to at least 30 percent in
2020 and subsequently continually increase it. The law is one of a series of measures
aimed at reducing dependence on fossil fuels and energy imports from outside the EU.
Several other states worldwide have adopted the basic features of the German EEG.

The reform is being driven by three guiding principles, namely the need:
(a) "to keep within agreed deployment corridors for the development of renewable
energy"
(b) "to keep to a minimum the overall cost arising from the Renewable Energy Sources
Act"
(c) "to use auctions to create a level playing field for all of the players involved"

Renewable Energies Heat Act


The Act makes the use of renewable energy for space and hot water heating mandatory
for new buildings. It also stipulates budget requirements to this end for the Market
Stimulation Programme. While the Act applies only to new buildings, it leaves room for
individual German States to enact policies addressing the existing building stock.
Owners of buildings that are to be newly erected are obliged by the EEWrmeG to use a
certain percentage of renewable energy for heating purposes (water and space heating).
The required percentage depends on which source of alternative energy the owner of a
building decides to use (for example, solar energy must satisfy at least 15% of the
building's heat requirements and biomass must satisfy at least 50%). Alternatively, other
measures can be adopted such as improving a building's insulation.3

Act establishing a Fund "Energy and Climate Fund" (EKFG)

3
https://uk.practicallaw.thomsonreuters.com/4-503-
0486?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1
The Energy and Climate Fund provides for additional finance to promote a reliable,
affordable and climate friendly energy system and electric mobility. The fund provides
finance for: energy efficiency, renewable energy, energy storage and grid technology,
energetic refurbishment of buildings, national climate action, international climate and
environment action, development of electric mobility. Moreover, the act allows for
payments to electricity intensive industries to compensate for possible indirect effects of
the EU emissions trading system on electricity prices starting in 2013. The fund is
designed to support the implementation of Germany's long-term climate and energy
strategy and to provide incentives for investments towards low-carbon or carbon-free
sources of energy

Public Policy Landscape for Germanys Energy Sector:


1. Shifting taxes
2. Shifting subsidies
3. Energy sector regulator
Energiewende (Jono)

Key to Germany's energy policies and politics is the "Energiewende." The term Energiewende
literally means Energy Transition and appeared in a 1980 publication from the German
Institute for Applied Ecology (Oko Institut) and such calls for the absolute abandonment of
nuclear and petroleum energy. The program pertains to transition by Germany to a low carbon,
environmentally sound, reliable, and affordable energy supply.

It received some sort of legal legitimacy when the government itself picked it up and the
German Federal Ministry of the Environment held a symposium entitled Energy Transition:
Nuclear Phase-Out and Climate Protection.

The first phase of Energiewende consists of two parts: energy efficiency and development of
renewables (sustainability). An apt quotation was uttered by the German Chancellor regarding
efficiency:

Currently, Germany has achieved the following marks regarding energy efficiency:
Regarding Sustainability, 94 percent of the population support the expansion of renewables and
downsizing of traditional methods of generation and transmission. Government monopoly on
generation is being dismantled as private citizens are allowed to participate, particularly on
public wind farms and solar parks - allowing photovoltaic system be set up by the said
individuals. Surveys from 2016 yields the finding that almost half the renewable energy capacity
in Germany is owned by citizens through energy cooperatives and private initiatives.

Another phase of Energiewende is the total elimination of the use of nuclear power, optimistic
that it would be completed on 2022. One factor pushing for this step is the Chernobyl Reactor
occurrence in Ukraine and to this day still affects Germany. As such, Germans found difficulty in
assessing the technological risks of maintaining nuclear power plants. In 2000, an aggressive
phasing out of the said plans was put into effect, slowed down in 2010 to bridge the energy
requirement gap during the transition. Barely a year in 2011, aggressive measures were
returned following the Fukushima Disaster in Japan.

In closing, the Energiewende enjoys support from 90% of the total German population, and
along with such lofty support comes goldilocks conditions that allow the seamless transition of
German energy from conventional to renewables. Dr. Robert Fares, a renowned scientist in the
field of Energy, states that we can learn by German example in that a coherent government
policy can transform an industry. On the other hand, the German Economy and Energy Minister
is being cautious in stating that Germany possesses a strong industrial base and removing both
nuclear and coal-powered sources would not be possible.

Table and data source: Federal Foreign Office of Germany, The German Energiewende
https://www.globallegalinsights.com/practice-areas/energy/global-legal-insights---energy-5th-
ed./germany

http://www.iea.org/publications/freepublications/publication/energy-policies-of-iea-countries---
germany-2013-review.html

- What does the German constitution say on natural resources?


- What are the statutes covering energy/electricity laws in germany? Basic rules?
- What are the landmark cases in germany covering the energy sector?

End note (Nikko)

Will it work? (weigh germanys options)


http://www.nationalgeographic.com/magazine/2015/11/germany-renewable-energy-revolution/

How is the PH compared to germany? (super short lang)

POWERPOINT: NIKKO