Germany should stick to renewables expansion targets to incentivise electrification – report
Clean Energy Wire
The new German government should refrain from lowering expansion goals for renewable energy, because an ambitious development would help lower electricity prices and system costs, incentivising the switch to electric appliances like heat pumps and EVs, said a report by Green Budget Germany (FÖS), commissioned by NGO Friends of the Earth Germany (BUND).
“If we want to push ahead with electrification in transport, buildings and industry, we need affordable renewable electricity,” said BUND’s Caroline Gebauer. Restricting expansion would not only hinder investment in future-proof technologies, but also “risk remaining stuck in fossil fuel structures.” Electrification is key to reduce greenhouse gas emissions in sectors like transport and buildings.
Reports have said that future electricity needs in Germany in the near term could be lower than initially projected, kicking off a debate about slowing renewables expansion accordingly. Germany aims to bring the renewables share in power consumption to 80 percent by 2030. With lower overall consumption, the government could stick to the target while still lowering renewables expansion.
Ramping up the build out of renewable energy infrastructure like solar parks and wind turbines still requires state support and the modernisation of grid infrastructure. The new economy minister, Katherina Reiche, has said that an energy transition monitoring report – that gauges expected electricity demand until 2030, the status of renewables expansion, grid buildout – would serve as a "reality check" for the government’s energy policy in the coming years. The report is expected to be published in September. Critics warned that it could serve as a pretext to slow renewables expansion.
A recent report by Aurora Energy Research said that the currently planned expansion of wind and solar energy by 2030 in Germany will lead to lower electricity prices, regardless of changes in demand in the same time period.