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German Energiewende: Lessons for Korea

by Dr. Peter Hefele

Making Energy Transitions Successful

After signing the Paris Agreement, many countries have intensified efforts in decarbonizing their energy systems to address climate change. In Asia, Germany is often seen as a role-model and forerunner in energy transformation. At the World Energy Council's International Energy Symposium 2017 in Seoul, Dr. Peter Hefele, Director of KAS RECAP, shared his insights into the latest development of German energy reform and discussed its implications for Asia.

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With now more than 30 percent of electricity from renewable energy (RE) sources, Germany is leading in the green transformation of its energy system. Whilst tremendous progress has been made on the production side of RE, Germanyā€™s energy transformation now faces severe bottlenecks: upgrading and ā€œsmartizingā€ grid systems, coordination with and integration into the European Energy Union, coping to fulfill the ambitious emissionsā€™ reduction goals due to weak progress in e-mobility and a rapid facing-out of nuclear energy. However, one can be optimistic about the success of the transformation as public support of the energy transformation will remain high, not least due to a long-term public debate, which already begun in the 1970s, and which paved the way for an overwhelming support for increased energy efficiency and substantial financial subsidization of RE. Yet, legal and administrative regulations have to be revised to prevent a further increase of financial burden for private households and companies. Production and distribution market should be even more open to market forces to increase innovation and reduce subsidies.

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