Energiewende in Germany

The Energiewende (German for energy transition) is the planned transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply. The term Energiewende is regularly used in English language publications without being translated (a loanword).:4The new system will rely heavily on renewable energy (particularly wind, photovoltaics, and hydroelectricity), energy efficiency, and energy demand management. Most if not all existing coal-fired generation will need to be retired. The phase-out of Germany's fleet of nuclear reactors, to be complete by 2022, is a key part of the program. Legislative support for the Energiewende was passed in late 2010 and includes greenhouse gas (GHG) reductions of 80–95% by 2050 (relative to 1990) and a renewable energy target of 60% by 2050. These targets are ambitious.The Berlin-based policy institute Agora Energiewende noted that 'while the German approach is not unique worldwide, the speed and scope of the Energiewende are exceptional'.A particular characteristic of the Energiewende compared to other planned energy transition is that it has been driven by citizens and not large energy utilities. Germany's switch to renewables comes with a democratization of the energy supply.The Energiewende also seeks a greater transparency in relation to national energy policy formation. Germany has made significant progress on its GHG emissions reduction target, achieving a 27% decrease between 1990 and 2014. However the country will need to maintain an average GHG emissions abatement rate of 3.5% per year to reach its Energiewende goal, equal to the maximum historical value thus far. As of 2013, Germany spends €1.5 billion per year on energy research in an effort to solve the technical and social issues raised by the transition.This includes a number of computer studies that have confirmed the feasibility and a similar cost (relative to business-as-usual and given that carbon is adequately priced) of the Energiewende. The term Energiewende was first contained in the title of a 1980 publication by the German Öko-Institut, calling for the complete abandonment of nuclear and petroleum energy.:223The most groundbreaking claim was that economic growth was possible without increased energy consumption. On 16 February 1980, the German Federal Ministry of the Environment also hosted a symposium in Berlin, called Energiewende – Atomausstieg und Klimaschutz (Energy Transition: Nuclear Phase-Out and Climate Protection). The Institute for Applied Ecology was funded by both environmental and religious organizations, and the importance of religious and conservative figures like Wolf von Fabeck and Peter Ahmels was crucial. In the following decades, the term Energiewende expanded in scope – in its present form it dates back to at least 2002. Energiewende designates a significant change in energy policy. The term encompasses a reorientation of policy from demand to supply and a shift from centralized to distributed generation (for example, producing heat and power in small cogeneration units), which should replace overproduction and avoidable energy consumption with energy-saving measures and increased efficiency. In a broader sense, this transition also entails a democratization of energy.In the traditional energy industry, a few large companies with large centralized power stations dominate the market as an oligopoly and consequently amass a worrisome level of both economic and political power. Renewable energies, in contrast, can, as a rule, be established in a decentralized manner. Public wind farms and solar parks can involve many citizens directly in energy production.Photovoltaic systems can even be set up by individuals. Municipal utilities can also benefit citizens financially, while the conventional energy industry profits a relatively small number of shareholders. Also significant, the decentralized structure of renewable energies enables creation of value locally and minimizes capital outflows from a region. Renewable energy sources therefore play an increasingly important role in municipal energy policy, and local governments often promote them. The key policy document outlining the Energiewende was published by the German government in September 2010, some six months before the Fukushima nuclear accident. Legislative support was passed in September 2010. On 6 June 2011, following Fukushima, the government removed the use of nuclear power as a bridging technology as part of their policy.After the 2013 federal elections, the new CDU/CSU and SPD coalition government continued the Energiewende, with only minor modification of its goals in the coalition agreement. An intermediate target was introduced of a 55–60% share of renewable energy in gross electricity consumption in 2035. Germany imports more than half of its energy. Important aspects include (as of November 2016):