Policy Paper 116
Taking stock of German energy policy in a European context
In face of the Ukrainian crisis, the security of supply of natural gas has moved to the center of the debate on European energy policy. This sometimes blinds to the fact that there are further challenges in European energy policy need to be addressed. For Germany, due to its energy transition, there are three problems that can only be solved on the European level.
In face of the Ukrainian crisis, the security of supply of natural gas has moved to the center of the debate on European energy policy. This sometimes blinds to the fact that there are further challenges in European energy policy need to be addressed. For Germany, due to its energy transition, there are three problems that can only be solved on the European level:
1. In spite of the energy transition, CO2 emissions in Germany are rising.
This is a result of a surplus of emission certificates within the Emissions Trading System (ETS), which is mainly caused by the falling production after the economic crisis in 2009. Thus the CO2 price has declined, and electricity generation from black and brown coal has been rising, while climate-friendly gas power plants throughout Germany have generated less and less electricity or have even been completely decommissioned. CO2 emissions in Germany will only be lowered by a European approach, through a modification of the ETS.
2. In spite of the rise in electricity generation from coal, electricity costs in Germany are high.
This is partly due to the EEG apportionment which has been raised to 6.24 cents per kilowatt hour in 2014. While the industry and private households in Germany are facing higher costs in order to reduce emissions, the spared CO2 emissions in Germany are emitted elsewhere in Europe, because CO2 certificates are cheap. The Intergovernmental Panel on Climate Change (IPCC) says that ideally, emissions should only be limited by the trading of emissions rights. Additional promotion schemes for renewable energies on the national level would only increase costs, but have no effect on climate change mitigation. This proposal is not without reason, but is unlikely to be implemented. Another more cost-efficient way could be the European harmonization of promotion schemes.
3. Germany is in risk of shortages of electricity supply during peak times, when the sun and wind cannot generate enough energy.
At the same time the operation of natural gas power plants, which could fill these gaps, is currently not economically feasible for energy suppliers. Shortages of supply could be prevented by electricity imports from the European neighbour countries, which would require the creation of a transnational transmission grid. German utility providers prefer the creation of a Europe-wide supply capacity market in which the state pays power plant operators for the provision of electricity generation capacities even if they are not used.
This Policy paper is also available in German.
SUR LE MÊME THÈME
ON THE SAME THEME
PUBLICATIONS
Can a minimum price on carbon accelerate the adoption of clean technologies?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/blogpostbleu.png)
High energy prices. Russia fights back?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/policypaperbleu.png)
Europe needs to innovate
to become a front-runner in the global green economy race
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/decryptagebleu.png)
MÉDIAS
MEDIAS
L’UE peut prendre des mesures de protection commerciale sur l’environnement
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/articlebleu.png)
“Opposition to subjecting Nord Stream 2 to EU rules has created a loss of credibility for Germany”
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/articlebleu.png)
E.Letta, J.A.Vinois and T.P.Carlin in the Energy Post about the Energy Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/tribunebleu.png)
ÉVÉNEMENTS
EVENTS
European EnerGreenDeal Conference
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 21 June 2019 – European Citizens and Consumers: seizing the opportunity of the energy transition
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Brussels, 20 June 2019 – EUSEW – What makes consumers tick? Best practices and tools
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Nantes, 8 May 2019 — District Heating & Cooling for All – Involving Citizens, Customers and Consumers
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 11 April 2019 — Social sciences for the energy transition: which EU support?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Malmö, 27 March 2019 – Energy Norway’s Winter Conference
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Berlin, 20 March 2019 – New Paradigm Workshop : Climate change, the potential for cross-border Action
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Berlin, 6 March 2019 — European Climate Initiative (EUKI) – Working group on Future of Mobility: The Role of Innovation in the Mobility Sector
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 22 October 2018 – Citizen consultation with Engie employees on the future of the Europe of energy
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 3 October 2018 – Europe needs a social pact for the energy transition
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Tallinn, 27 and 28 September 2018 – Nordic Baltic Energy Conference
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 22 September 2018 – Citizen consultation: Energy Europe
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Berlin, 7 September 2018 – High-level Roundtable “Quo Vadis Energy Union”
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Bruges, 12 July 2018 – Just a transition or a just transition? Jobs, skills, energy poverty
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Bruges, 12 July 2018 – Negotiating the Energy Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Bruges, 3 July 2018 – Negotiating the Energy Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Bruges, 2 July 2018 – Introduction to the Energy Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 28 June 2018 – Make the fight against climate change the bedrock of a sustainable and prosperous society
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 13 March 2018 – Information day Horizon 2020
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 7 March 2018 – Study Group on the State of the Energy Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 1st March 2018 – Citizen Participation in the Energy Transition
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Bruxelles, 25 January 2018 – Academy study trip to Brussels
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Brussels, 25 October 2017 – The penultimate debate on Russian gas to Europe
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 16 October 2017 – “Making the Energy Transition a European Success”
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 5 October 2017 – Energy Transition of the European Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 5 October 2017 – Energy transition in France: What to expect from the new government?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Bruges, 13 July 2017 – Just a transition or a just transition? Jobs, skills, energy poverty
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Budapest, 30 May 2017 – Electricity Market Integration 2.0 in Central and South East Europe
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Tallinn, 3 May 2017 – State of play of Energy Union and governance
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 19 January 2017 – National opinions on Energy Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 18 January 2017 – The reform of the European market of the electricity
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 18 November 2016 – New and ambitious or just more of the same? The Energy Union at a crossroads
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 5 September 2016 – The stakes of energy transition in Europe
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 12 July 2016 – The European electricity market reform
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Milan, 21 June – Energy union and the European super grid
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Sofia, 10 June 2016 – Finalising the internal Energy market
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Poznan, 10-11th May 2016 – Innovative Economy, Modern Society, Smart Energy Sector
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Delft, 22 April 2016 – The geo-economics of the EU energy policy
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)