June 30, 2014

Deutsche Bank Research: The changing energy mix in Germany

The drivers are the Energiewende and international trends

Due to numerous political incentives, especially relating to the Renewable Energy Sources Act (EEG), the renewables share has increased sixfold since 1997 with regard to both primary energy consumption and electricity generation. Germany's first energy policy rethink (or Energiewende 1.0) not only sent costs ballooning but also impacted on electricity prices, the generation mix and emissions trading. And despite the EEG the contribution of wind/solar to primary energy consumption (PEC) was a mere 2%-plus in 2013. Overall, the “green electricity share” could reach roughly 60% by 2035. But how will the remaining 40% be generated – in view of the Energiewende 2.0? Depending on the scenario, the onus is more on natural gas or coal.

Deutsche Bank Research have issued the following publication "Current Issues":
The changing energy mix in Germany

PEC shares change

share_of_primary_energy_consumption.JPG

“If the targeted Energiewende 2.0 on balance endows the rising volumes of green electricity with the greater economic rationality that is now particularly necessary, it could become a model/blueprint for other countries, too.”

Josef Auer Sector Analyst, Deutsche Bank Research / Economics, Author of the Study

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