Germany

In order to achieve the ambitious Energiewende by 2030 the goals are clear: half of all electricity supply will come from renewable energy sources and coal use will be phased out by 2038. Germany has been an early leader in offshore wind and solar PV and increased its targets with 20 GW of offshore wind by 2030 and 40 GW by 2040, alongside investments in 5 GW of hydrogen by 2030.

In its 2020 policy review, the IEA underlines that Germany needs to boost cost-effective market-based approaches to support the forecasted growth of variable renewable generation. The costs and benefits of the energy transition need to be allocated in a fair and transparent way among all sectors and end-users. In particular, emissions reductions from heat and transport require additional policy impetus.

To foster a secure and affordable transition, transmission and distribution networks must expand in parallel with renewable energy capacity. As nuclear and coal-fired generation are being phased out, the monitoring of Germany’s ability to meet electricity demand at peak times should continue in the medium term.

The 2020 IEA in-depth review provides recommendations to help the country guide the transition of Germany’s energy sector.

Last updated Dec 16, 2021