Energy transition in Germany

The Energiewende (German for energy transition) is the transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply. The new system will rely heavily on renewable energy (particularly wind, photovoltaics, and hydroelectricity), energy efficiency, and energy demand management. Most if not all existing coal-fired generation will need to be retired. The phase-out of Germany's fleet of nuclear reactors, to be complete by 2022, is a key part of the program.

Legislative support for the Energiewende was passed in late 2010 and includes greenhouse gas (GHG) reductions of 80–95% by 2050 (relative to 1990) and a renewable energy target of 60% by 2050. These targets are ambitious. The Berlin-based policy institute Agora Energiewende noted that "while the German approach is not unique worldwide, the speed and scope of the Energiewende are exceptional". The Energiewende also seeks a greater transparency in relation to national energy policy formation.

Germany has made significant progress on its GHG emissions reduction target, achieving a 27% decrease between 1990 and 2014. However Germany will need to maintain an average GHG emissions abatement rate of 3.5% per annum to reach its Energiewende goal, equal to the maximum historical value thus far.

Germany spends €1.5 billion per annum on energy research (2013 figure) in an effort to solve the technical and social issues raised by the transition. This includes a number of computer studies that have confirmed the feasibility and a similar cost (relative to business-as-usual and given that carbon is adequately priced) of the Energiewende.

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