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Germany 2025
…this context, the International Energy Agency (IEA) conducts Energy Policy Reviews to support governments in developing more impactful energy and climate policies.This Energy Policy Review was prepared in partnership between the Government of Germany and the IEA. It draws on the IEA's extensive knowledge and the inputs of expert peers from IEA Member countries to assess Germany’s most pressing energy sector challenges and provide recommendations on how to address them, backed by international best practices. The report also highlights areas where Germany’s leadership can serve as an example in promoting secure clean energy transitions. It also…
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Germany
Germany’s Climate Law sets out the framework for reaching net zero emissions by 2045. In order to achieve the ambitious Energiewende by 2030, 80% of all electricity supply will need to come from renewable energy sources (and 100% by 2035) and coal is to be completely phased out. Germany has been an early leader in offshore wind and solar PV and phased out nuclear power in 2023. Major legislative reforms in renewable energy planning and siting support targets of 100-110 GW of onshore wind, 30 GW offshore wind and 200 GW solar, alongside investments in 10 GW of…
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages
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Germany 2025 Executive summary
…will need to be matched by a strong focus on effective, cost-efficient implementation. Given that German consumers pay among the highest electricity prices in Europe, policy developments will need to also be seen through an affordability and competitiveness lens, including by ensuring that the distributional impacts are well understood and that proactive measures are taken to manage the costs of transition measures. To ensure public support for the transition, the government should also clearly communicate costs, benefits and timelines.Germany should prioritise actions that optimise the efficiency and resilience of its growing electricity system, such as smart meters, grids…
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Germany 2022 International collaborations - G7
IEA Contributions to the G7 G7 Summit, Schloss Elmau, 26-28 June In 2022, the IEA advised the G7 on energy security, clean energy financing and supply chains, Just Energy Transition Partnerships, and climate change.In June, IEA Executive Director Fatih Birol took part in the G7 Summit in Elmau, Germany, where he briefed world leaders on the IEA’s recommendations for responding to the global energy crisis. At the invitation of Chancellor Olaf Scholz of Germany, head of the G7 Pr...
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Germany 2017 International collaborations - G20
IEA Contribution to G20 IEA Executive Director Fatih Birol is in the middle of the first row. (Photo courtesy of Berlin Energy Transition Dialogue, all rights reserved) IEA has played a critical role in the energy and climate track of the German G20. The G20 Hamburg Climate and Energy Action Plan for Growth 2017 reflects core IEA contributions: the IEA/IRENA report Perspectives for the Energy Transition: Investment Needs for a Low Carbon Energy System and related OEC...
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Asset values
…commercial sectors. Studies show that sale price premiums for energy efficient buildings range from 3% to 15% in residential buildings and 13 to 20% in commercial buildings. Key analysis Studies show that individuals and businesses are willing to pay a higher rent and/or sales price for property with improved energy performance, such as that expressed in energy performance certificates. Evidence from the United States and Germany suggests that sales price premiums are about twice as high as rental price premiums. Meanwhile, in the industrial and utility sectors, energy efficiency measures can increase asset values by improving productivity, reducing wear…
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Northwest European Hydrogen Monitor 2025
…This is the third edition of the Northwest European Hydrogen Monitor. It provides an annual update of low-emissions hydrogen market developments in Northwest Europe and is the result of collaboration among the countries involved in the Hydrogen Initiative of the Clean Energy Ministerial (CEM-H2I) workstream entitled “Roundtable on the North-West European Region” and the hydrogen working group of the Pentalateral Forum.The countries analysed in this Monitor are Austria, Belgium, Denmark, France, Germany, Luxemburg, the Netherlands, Norway, Switzerland and the United Kingdom. Market monitoring is accompanied by regular dialogues with key stakeholders to facilitate the exchange of…
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Grid investments
…whereas efficiency measures, such as industrial process upgrades and building retrofits, take less than one year to deploy. Demand-side measures can also reduce grid congestion, a key factor in determining costs to manage the system. These congestion management costs tripled in Germany, the United Kingdom and the United States from 2019 to 2022, and can constrain industrial expansion. Implementing energy efficiency and demand response measures can decrease and shift peak demand to less congested periods when electricity prices are lower and there is less stress on grid infrastructure. Demand response has seen rising uptake around the world, but further…
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Economic growth
…of economic activity per unit of labour – between 1.4% and 3.6% compared with firms with no investment in energy efficiency.Improvement of public budgetsWhether by reducing government expenditures on energy or by generating increased tax revenues through greater economic activity and/or increased spending on energy efficiency-related goods and services, energy efficiency improvements can have important impacts on the budgetary position of national and sub-national entities. In the European Union, a study found a reduction in public budget deficits as a result of energy efficiency investments. Other studies, including in Germany, also illustrate the benefits and...
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Delivering on the EU’s electrification ambitions
…an Industrial Development Bank to mobilise EUR 100 billion, of which a first EUR 1 billion auction has started. As low- and medium-temperature heat accounts for only around one-third of the EU’s total industrial energy demand, policy support is also emerging for the electrification of higher-temperature processes: 9 of the 15 projects which won funding in the first round of Germany’s Carbon Contracts for Difference Auction aim to use electricity to supply heat at temperatures above 150⁰C.In buildings, reaching the economy-wide target would see the electrification rate increase to 43%, up from 37...
