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Germany’s Energiewende Requires Sophisticated Governance, Political Stamina

"Berlin reichstag CP" by Cezary Piwowarski - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Berlin_reichstag_CP.jpg#mediaviewer/File:Berlin_reichstag_CP.jpgConceptualizing a policy as broad and ambitious as Energiewende – Germany’s goal to transition nearly 100 percent of its electricity supply to renewable energy by 2050 – is one thing. Implementing it is another thing entirely.

For this, ‘good governance’ is required – or as the Hertie School defines it: “an effective, efficient, and reliable set of legitimate institutions and actors engaged in a process of dealing with a matter of public concern.”

Energiewende’s implementation presents significant governance challenges. It is a public matter that requires cooperation and coordination from various public and private actors, as well as top-down decision-making. It also comprises diverse political levels and jurisdictions – global, European, federal, state, and municipal – as well as interest groups, cooperatives, alliances, banks, and individuals.

While Energiewende is very much a German policy designed for a German political context, there are still lessons the U.S. (and any country considering an energy transition for that matter) can learn from the challenges Germany has faced in developing a governance strategy to go where no one has gone before: overhauling the modern electricity system as we know it to make the German power grid more clean, efficient, resilient, and dynamic. Read More »

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Two Political Lessons from Germany’s Energiewende

Check mateAs the recent midterm elections have thrust American politics to the media’s forefront, battles for political power are fresh in our minds. While Democrats and Republicans are not the contestants in governments outside of the U.S., struggle for power among groups whose ideals clash are the bedrock of political systems everywhere, including Germany, where politics play a major role in shaping the country’s energy transition.

Political actors in countries with coordinated market economies, such as Germany, prefer dialogues, strategic concessions, and trade-offs that give rise to policy decisions unanimous among main stakeholder groups. However, for Energiewende – Germany’s aggressive plan to transition to nearly 100 percent renewable energy by 2050 – unanimity is constrained. That’s because two interest groups, the Conventional Energy Coalition (CEC) and the Sustainable Energy Coalition (SEC), support fundamentally different energy systems that oppose each other. Read More »

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Germany’s Energiewende is Shifting the Energy Paradigm – Now it’s Time to Optimize

solar-cells-491701_640Revolutionary paradigm shifts often require cohesive development of many moving parts, some of which advance more quickly than others in practice. Germany’s revolutionary Energiewende (or “energy transition”) is no exception. Set to achieve nearly 100 percent renewable energy by 2050, Germany’s Energiewende is one of the most aggressive clean energy declarations in the world. While growth of Germany’s installed renewables capacity has been explosive in recent years, optimization measures designed for Energiewende have manifested at a relatively slow pace.

Germany already has one of the most reliable electric grids in the world, but as implementation of Energiewende continues, optimization will be key to its future success. This will require better sources of backup generation to accommodate the intermittency of wind and solar, a dynamic energy market that ensures fair compensation for this backup, and a more flexible, resilient grid enabled by smart grid technologies to fully optimize demand side resources and a growing renewable energy portfolio. Read More »

Posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Energy Financing, Energy Storage, Grid Modernization, Natural Gas, Renewable Energy, Utility Business Models / Tagged | Read 5 Responses

Germany’s Energiewende Proves Electricity can be Clean and Reliable

electric-power-273644_640Since 2004, the year of the first major revision of Germany’s Renewable Energy Act (EEG), the country has added at least 35 gigawatts (GW) of solar and 35 GW of wind to its electric grid – enough to offset upwards of 35 coal plants. What’s more impressive is during the first half of 2014, close to 29 percent of Germany’s electricity came from renewable sources. For perspective, America’s renewables percentage, at about 14 percent, was half of Germany’s during this timeframe.

Meanwhile, the country has improved its status as a grid reliability leader, causing the Heinrich Böll Foundation’s Energy Transition blog to conclude, “Clearly, installing the equivalent of 100 percent of peak demand as wind and solar capacity does not bring down the grid.”  Renewables International further asserts, “Renewables have not yet reached a penetration level that has detrimentally impacted grid reliability.”

This success runs contrary to the predictions of Energiewende’s critics, who have sounded the alarms about investing in “too much” renewable energy. Some of these concerns are more valid than others, but the truth is, most of these claims are blown out of proportion, fixable with solutions that are not overly complex, and/or based on no empirical data. Read More »

Posted in Clean Energy, Grid Modernization, Renewable Energy / Tagged | Read 5 Responses