Study sees Germany in the middle field when it comes to restructuring the electricity market

As of: November 8th, 2023 10:29 a.m

By 2030, 80 percent of the electricity consumed in Germany should come from renewable energies. But according to a study, the restructuring of the electricity market is progressing rather slowly compared to other European countries.

According to a study, Germany performs only mediocrely compared to other European countries when it comes to restructuring the electricity market. A study published today by the British Association for Renewable Energy and Clean Technology together with the energy management company Eaton assesses and compares the framework conditions for the energy transition away from fossil fuels in 14 European countries.

The “Energy Transition Readiness Index” assesses countries in several categories: in terms of social support for the energy transition, their ability to use new technologies and business models, and the flexibility of the energy market. Accordingly, on a scale of 1 to 6, Germany ends up in the lower midfield at level 4, together with Italy and Spain. In the ranking, only Greece, Switzerland and Poland, at the bottom, are placed in worse classes. As in previous years, Norway led the way, ahead of Denmark, Finland and Sweden.

Nordic countries are pioneers

The authors found, among other things, that the spread of intelligent electricity meters in Germany is “extremely low” at one percent – in Nordic countries such as Denmark the penetration is up to 100 percent. The networked measuring devices for heat or electricity automatically transmit consumption data to providers and also make them visible to users.

Heat pumps are also relatively less common in Germany, it was said. “In this country there are only 38 devices per 1,000 households, while in Norway there are 625, in Sweden 503 and in Finland 438.” On the other hand, the authors say that Germany and Great Britain have been able to significantly improve their attractiveness for investors.

The share of renewable energies should double

When gradually phasing out coal and gas, network operators have to balance fluctuating energy production, for example from wind and electricity, with demand. Flexibility is essential for network stability, according to the study. To achieve this, electricity storage would have to be promoted.

Germany has the largest electricity market of all the countries examined. Last year, the share of renewable energies in German electricity consumption was 45 percent – after 41 percent in 2021. The federal government has set the goal of generating a total of 80 percent of energy from wind power or solar systems by 2030. The study estimates consumption in 2030 at 658 terawatt hours (TWh). To achieve the 80 percent target, renewable energy production must increase by 276 TWh.

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