{"id":9116,"date":"2014-12-29T13:37:55","date_gmt":"2014-12-29T19:37:55","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=9116"},"modified":"2014-12-29T14:26:37","modified_gmt":"2014-12-29T20:26:37","slug":"germanys-energiewende-requires-sophisticated-governance-political-stamina","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2014\/12\/29\/germanys-energiewende-requires-sophisticated-governance-political-stamina\/","title":{"rendered":"Germany\u2019s Energiewende Requires Sophisticated Governance, Political Stamina"},"content":{"rendered":"

\""Berlin<\/a>Conceptualizing a policy as broad and ambitious as Energiewende<\/em> \u2013 Germany\u2019s goal to transition nearly 100 percent of its electricity supply to renewable energy by 2050 \u2013 is one thing. Implementing it is another thing entirely.<\/p>\n

For this, \u2018good governance\u2019 is required \u2013 or as the Hertie School<\/a> defines it: \u201can effective, efficient, and reliable set of legitimate institutions and actors engaged in a process of dealing with a matter of public concern.\u201d<\/p>\n

Energiewende<\/em>\u2019s 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 \u2013 global, European, federal, state, and municipal \u2013 as well as interest groups, cooperatives, alliances, banks, and individuals.<\/p>\n

While Energiewende <\/em>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.<\/p>\n

Overlap on the federal level<\/strong><\/p>\n

Many of the governance challenges associated with Energiewende<\/em> stem from its long-term nature and dependence on variables that are not entirely within the government\u2019s control.<\/p>\n

On a federal level, six ministries have relevant jurisdictions concerning Energiewende<\/em>. The two most important actors are the Federal Ministry of Economics and Energy (BMWi) and the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB). While there has been recent progress in clarifying ministries\u2019 authorities, there is still overlap among ministries\u2019 responsibilities. For example, \u2018energy efficiency\u2019 improvement is an objective for the BMWi and BMUB, as well as for the Federal Ministry of Transport and Digital Infrastructure (BMVI). For details on the Energiewende<\/em> responsibilities of the relevant federal ministries and other governing bodies, refer to the supplementary table here<\/a>.<\/p>\n

States\u2019 rights cause inconsistencies <\/strong><\/p>\n

Germany\u2019s federalism adds a wrinkle of complexity to the Energiewende<\/em> governance.\u00a0 The country\u2019s sixteen states (Bundesl\u00e4nder) operate autonomously on many Energiewende<\/em>-related subjects, such as state support schemes, permitting procedures, regulation of construction, and land-use planning. All states (L\u00e4nder) have their own agendas; so, inconsistencies between federal and state goals are inevitable.\u00a0 For example, both northern and southern states would like to increase their supply of renewables, but all these states moving forward on this ambition could lead to over-capacities. This is a problem because oversupplies of power to the grid can stress and damage transmission and distribution infrastructure, leading to reliability concerns.\u00a0 At the moment, however, Germany is a hallmark<\/a> for electric grid reliability.<\/p>\n

While states have recently agreed to improve cooperation and relinquish more planning competencies to the federal level (the Act to Accelerate the Expansion of Electricity Networks in 2011 streamlined approval and transferred competencies from states to the federal government) unclear jurisdictions and lack of accountability are still prevalent and, thus, planning and implementation problems are likely to persist. There must be a clear, accepted understanding that the higher level of government has authority, if conflicting agendas among lower levels of government arise.[Tweet “Flexibility, Political Stamina Key to Successful Governance of Germany\u2019s Energiewende http:\/\/ow.ly\/GyJ7Y “]<\/p>\n

Energiewende<\/em> is inherently political <\/strong><\/p>\n

While an energy transition is inherently political, steps that shelter an energy transition\u2019s governance structure from partisan politics improve stability. Partisan politics renders individual governing bodies\u2019 positions dynamic; and, thus, how the moving parts of an energy transition work together as a unit frequently fluctuates. Additional levels of government (ex. local, state, federal) intensify this flux. <\/em><\/p>\n

At present, Barbara Hendricks and Sigmar Gabriel head the BMUB and BMWi, respectively.\u00a0 Both are members of the Social Democratic Party (SPD), a political party that aligns itself in the middle between the sustainable energy coalition (SEC) and the conventional energy coalition, but leans SEC. While Energiewende<\/em> is a program with long-term 2050 goals, the heads of these governing ministries fluctuate more regularly; since Energiewende\u2019s<\/em> official start in 2010, there have been 3 different heads of the BMWi. The political leanings \u2013 specifically, whether ministers are proponents or opponents of Energiewende<\/em> \u2013 of these ministries in the future is an unknown that will impact the efficiency and effectiveness of Energiewende\u2019s<\/em> implementation.<\/p>\n

Hertie School<\/a> explains that, with respect to Germany\u2019s Energiewende<\/em>,<\/p>\n

\u201cPolitical steering is not entirely coherent, jurisdictions remain unclear, and processes are ineffective. This is largely due to the various levels of governance and conflicting party strategies. To a certain extent the different parties can be attributed to one of the two major advocacy coalitions. However, certain parties have established their own policy proposals. This results in a variety of possible political scenarios that create uncertainty about the future governance processes of Energiewende<\/em>\u2026 Depending on the future government, the federal steering of Energiewende<\/em> will increasingly represent interests of the conventional or sustainable energy coalition. However, due to the multi-level government structure of Germany, lower levels of government might still head into different directions and undermine federal decisions.\u201d<\/p>\n

This underscores the uncertainties that arise when an ambitious energy transition with long-term goals relies on a sustained, favorable political backdrop. An energy transition is inherently political<\/a>, but prudent measures to minimize political risks exist.<\/p>\n

EDF does not advocate for any changes to Germany\u2019s Energiewende<\/em>\u2019s governance structure. For future energy transitions elsewhere, however, it should be noted that there are ways to organize governance \u2013 such as creating administrative positions for appointees with indefinite terms \u2013 that are less prone to the instabilities associated with partisan politics.<\/p>\n

Conclusion<\/strong><\/p>\n

Energiewende\u2019s<\/em> dynamic development will require continued flexibility in its governance structure. Overlapping responsibilities of federal ministries must be minimized as the program evolves and Germany\u2019s federalism preserved while states work together to optimize the country\u2019s electric grid. This flexibility, however, must not extend to the rigor with which Energiewende\u2019s<\/em> goals are pursued, as a key to Energiewende\u2019s<\/em> success is how it develops within the political agendas of fluctuating heads of state, some of whom might oppose Energiewende<\/em> in future years.<\/p>\n

 <\/p>\n

This is the sixth and final blog post in\u00a0a six-part series on <\/em>Energiewende, which describes best practices gleaned from the German experience and examines their U.S. applicability. Topics will include the <\/em>Economics<\/em><\/a>,\u00a0<\/em>Politics<\/em><\/a>, Governance, <\/em>Implementation<\/em><\/a>, and\u00a0<\/em>Reliability<\/em><\/a> of <\/em>Energiewende.<\/em><\/p>\n

Photo source:\u00a0Cezary Piwowarski\u00a0<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Conceptualizing a policy as broad and ambitious as Energiewende \u2013 Germany\u2019s goal to transition nearly 100 percent of its electricity supply to renewable energy by 2050 \u2013 is one thing. Implementing it is another thing entirely. 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