IEA recommends Germany optimize power systems to reduce costs
The International Energy Agency (IEA) new energy policy review shows that improving the efficiency and resilience of Germany’s power network is crucial to ensuring a safe and affordable energy transition.
The IEA advocates that the country improve its energy systems to reduce costs and accelerate emission reductions in different sectors. Germany’s Energiewende policy is driving its shift to renewable energy.
The country’s transition to power systems based primarily on renewable energy is seen as an opportunity to improve energy security and improve long-term economic competitiveness.
However, by 2045, there is still significant work to achieve its climate-neutral goals, including expanding power infrastructure, reducing energy costs and addressing emissions in sectors such as transportation, buildings and industries.
The IEA report acknowledges Germany’s progress in phase-out nuclear energy and reducing its dependence on coal-fired power generation. Meanwhile, the country has made great progress in increasing wind and solar capacity.
Despite these advances, it faces ongoing challenges, especially due to the energy crisis caused by Russia’s reduction of the EU’s natural gas supply.
Germany is experiencing regional differences in electricity supply and rising electricity costs, which threaten affordability and industrial competitiveness.
According to the report, overcoming these challenges will depend on the continued growth of renewable energy generation, the expansion of the power grid, and the enhanced flexibility within the power system.
Furthermore, efforts to lower consumer energy prices are crucial to success.
The transport sector remains the largest contributor to Germany’s emissions, and the IEA report calls for a more focused approach to addressing this issue.
This includes promoting the adoption of electric vehicles, biofuels, and improvements in public transportation infrastructure.
The report also highlights that consumer incentives are crucial to encouraging the widespread adoption of low-emission transport options to achieve Germany’s climate goals.
The report highlights the need for efforts to improve the energy efficiency of old German construction stocks to support their clean energy transition.
The country has taken an important step towards passing the Building Energy Act and the Thermal Plan Act, which together provides a framework to reduce emissions from space heating through regional heating and heat pump technologies.
Ensuring effective communication with the family is essential to achieve the desired outcome.