1.8 Energy

1.8.1 Getting Out of Nuclear Energy

Both in private households as well as in transport and industry fossil fuels continue to be the backbone of the energy mix, accounting for about a third the mineral oil is the most important primary energy source, followed by natural gas, lignite, coal and nuclear energy. The Nuclear Energy (share of around nine per cent) will gradually be phased out and replaced by renewable energies according to the plans of the Federal Government. The funding policy set at the beginning of the 1990s in gear makes the use of renewable energy attractive and economical. That was the Renewable Energy Sources Act (EEG), a market incentive program to promote the use of renewable energy, is considered the driver of the upswing of climatefriendly energy sources and is adopted by many countries in its fundamentals.

The key policy document outlining the energy transition/Energiewende was published by the German government in September 2010, some six months before the Fukushime nuclear accident. Legislative support was passed in 2011. Important aspects include:

• greenhouse gas reductions: 80–95% reduction by 2050
• renewable energy targets: 60% share by 2050 (renewables broadly defined as hydro, solar and wind power)
• energy efficiency: electricity efficiency up by 50% by 2050
• an associated research and development drive

The policy has been embraced by the German federal government and has resulted in a huge expansion of renewables.

1.8.2. Conclusions and Implications for Other Countries in the Renewable Energies

Germany has been very successful in increasing the share of renewable electricity over the past decade, and this has largely been achieved by effective public policy. Within the public policy mix, the feed-in system was most significant. Demand from green power customers has also started to pick up, but impact on new capacity so far has been limited. In terms of lessons learned, we conclude by proposing a number of facilitating factors that helped the policy process in Germany, followed by recommendations for designing renewable energy policies and markets. In terms of facilitating factors, we would argue that the German model has been brought about by:

• A strong central government and a political culture that is open to government intervention
• A critical mass of interest groups in favour of renewable
• A critical mass of politicians with momentum and expertise about renewable energy
• The critical role of parliament: As the German example has shown, the electric utility industry and the federal Ministry of Economics have vested interests and can typically not be expected to be driving forces behind renewable energy legislation. Rather, members of parliament have taken the initiative, recently seconded by the federal ministry of the Environment.
• Forming inter-party coalitions: The German example has shown that support for renewable energy cuts across traditional political camps.
• Careful burden sharing: As any policy measure, the feed-in system has costs and benefits. Distributing costs widely among a disperse group of people was a success factor, while over time beneficiaries have been able to create a visible lobby.
• Market liberalisation creates a window of opportunity: When the German power market was deregulated in 1998, temporary price reductions left some room for compensation of renewable generators. The changing rules of the game also led to the dissolution of existing power camps, enabling new coalitions, and weakening the homogeneity of established associations. This was particularly relevant in the policy discourse around the EEG in 2000.
• Leaving room for customer demand to play its role
• A piece of luck.