Summary Germany and Energy
The world’s fourth largest economy– ranking sixth in terms of CO2 emissions – Germany is faced with the challenge of ensuring the future of its highly competitive industries while also securing an energy transition that is free of nuclear power and less dependent on fossil fuels. To meet this ambition, Germany has focused on large-scale development of renewable energies, especially wind and solar. The country’s policy, known as the Energiewende, is designed to take on several successive challenges: phasing out nuclear power without increasing the use of coal, reducing coal consumption over the medium term without becoming more dependent on Russian gas, and overcoming the intermittency of renewable energies by developing its power grids and electricity storage capacity. It is also imperative that Germany transition toward more sustainable mobility without weakening its global position in the auto industry. As the European Union’s leading economy, Germany can only successfully achieve its energy transition by leveraging energy exchanges – primarily power trades – with neighboring countries, in particular France.