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Year 2 of Germany's Energy Transition

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Year 2 of  Germany's Energy Transition
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After a decade characterised by the take-off of renewable energies, Germany decided in 2010 to make them the top priority. At the same time, it decided to make exemplary efforts in terms of energy efficiency and the reduction of greenhouse gases. The audacious nature of this policy was strengthened by the “turn” taken in 2011 to give up nuclear energy in the wake of the Fukushima accident.

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Given the initial results for 2012, Germany seems to be on target for reaching its national objective, of 18% renewable energy within total consumption by 2020. Germany is also well placed to reduce its planned cut in electricity consumption of 10%. The country will also meet its commitments, both international and European, concerning greenhouse gas emissions. In contrast, recent trends suggest it will be increasingly difficult for Germany to meet its own, domestic goal of cutting emissions by 40%, by 2020. Furthermore, it is hard to see how Germany will be able to bring down total energy consumption by 20% by 2020 (from 2008 levels), or increase the share of renewables in electricity production above 35%.

Success with this latter objective is largely dependent on reinforcing networks, both for transmission over long distances and for local distribution. It is not sure that the delays accumulated in both areas will be made up for by 2020, despite the rapid legislative adjustments that have already been made. By favouring intermittent energy sources - wind and solar power - Germany also faces problems of managing frequent production fluctuations. The long term solution to this lies in storing electricity. However, despite the considerable efforts in research and development, the technologies necessary for this will doubtless not be available on a large scale before the end of the present decade. These efforts could nevertheless provide German industry with interesting advantages in sectors of high potential, such as electric vehicles.

Measures to promote renewable energies are also costly, and constitute another threat slowing down their development. Until now, this cost has been born by household consumers and small firms, with large industries being sheltered from such costs. Yet these rising costs are being increasingly criticised. Changes are likely of follow in the wake of the national elections which took place on the 22 September 2013, and their impact on the future pace of renewable electricity production remains unknown. Yet so far the sector has a positive image due to the jobs it creates. The latter are going to depend more and more on foreign outlets, though the misadventures of photovoltaic solar energy indicate the uncertainties hanging over the sector. Renewable energies however do have a major advantage in that they have been able to set up financial sources that are both solid and not very costly.

Such financing facilities do not seem to be available to most European countries. This illustrates a specific characteristic of German renewables, namely that their development in Germany also depends on the reaction of other European states. The latter are affected physically by the massive arrival of electricity from wind and solar power being produced in Germany, and economically by the disruptions this leads to in wholesale markets. So far, the response of other countries has been poorly coordinated by the European Commission which seems to have been caught on the wrong foot by the implementation of capacity mechanisms, in some countries, or by the demands to reconstruct the market model.

 

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978-2-36567-206-1

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Year 2 of Germany's Energy Transition

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Michel_Cruciani

Michel CRUCIANI

Intitulé du poste

Ancien chercheur associé, Centre Énergie & Climat de l'Ifri

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Climate & Energy
Center for Energy & Climate
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Ifri's Energy and Climate Center carries out activities and research on the geopolitical and geoeconomic issues of energy transitions such as energy security, competitiveness, control of value chains, and acceptability. Specialized in the study of European energy/climate policies as well as energy markets in Europe and around the world, its work also focuses on the energy and climate strategies of major powers such as the United States, China or India. It offers recognized expertise, enriched by international collaborations and events, particularly in Paris and Brussels.

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AI, Data Centers and Energy Demand: Reassessing and Exploring the Trends

Date de publication
24 February 2025
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The information and communication technologies sector today accounts for 9% of global electricity consumption, data centers for 1-1.3%, and artificial intelligence (AI) for less than 0.2%. The growing energy demands of cloud services first, and now AI workloads (10% of today’s data centers electricity demand), have exacerbated this trend. In the future, hyperscale data centers will gain shares amongst all kinds of data centers and AI will probably account for around 20% of data centers electricity demand by 2030.

Laure de ROUCY-ROCHEGONDE Adrien BUFFARD
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Unlocking India’s Energy Transition: Addressing Grid Flexibility Challenges and Solutions

Date de publication
20 February 2025
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India is rapidly scaling up its renewable energy (RE) capacity, adding 15–20 GW annually, but the ambitious goal of 500 GW of non-fossil capacity by 2030 is at risk unless the pace accelerates.

Akul RAIZADA
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Europe’s Black Mass Evasion: From Black Box to Strategic Recycling

Date de publication
02 December 2024
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EV batteries recycling is a building block for boosting the European Union (EU)’s strategic autonomy in the field of critical raw minerals (CRM) value chains. Yet, recent evolutions in the European EV value chain, marked by cancellations or postponements of projects, are raising the alarm on the prospects of the battery recycling industry in Europe.

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Couverture Politique étrangère 4-2024

The New Geopolitics of Energy

Date de publication
03 December 2024
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Following the dramatic floods in Valencia, and as COP29 opens in Baku, climate change is forcing us to closely reexamine the pace—and the stumbling blocks—of the energy transition.

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