Germany should make energy efficiency “core pillar” of security strategy, says business group

Germany’s government should make energy efficiency a “core pillar” of its security and resilience strategy in light of geopolitical risks and ongoing disruptions to global energy supply chains, said a business and policy group. “Every kilowatt-hour saved reduces dependence on imports, eases the strain on critical infrastructure and strengthens Germany’s strategic capacity to act,” the German Business Initiative for Energy Efficiency (DENEFF) and the European Initiative for Energy Security (EIES) said in a policy brief. 

Energy efficiency must be embedded in industrial, security and defence policy, the associations said. They argued that the higher Germany’s energy demand is, the more energy must be imported, kept in reserves, protected and backed up with redundancies – while efficiency reduces how much energy is needed in the first place. 

“Lower energy demand takes the strain off the electricity grids in particular, makes it easier to manage disruptions and reduces the need for additional generation capacity, grid expansion and strategic reserves,” the associations wrote. While diversification of energy suppliers could reduce risks, it did not eliminate structural dependencies on imports, they added.

The government should thus ensure public planning and funding follow an “efficiency first” principle, consistently implement Germany’s Energy Efficiency Act, and present an energy security strategy anchoring efficiency as a strategic asset. 

Germany heads into autumn with unusually low gas storage levels, which could pose a supply security risk for Europe this coming winter, analysts have warned. Meanwhile, the US- and Israel-led attack on Iran upended global energy markets. Germany remains heavily dependent on imports to cover its oil and gas needs, making it particularly vulnerable to volatility and crises.

Germany’s economy ministry has repeatedly dismissed concerns over low storage levels, arguing that supply security is assured, also thanks to imports via pipeline from Norway and several LNG import terminals in Germany. But experts have warned imports currently feed directly into use instead of storage.