Other Europeans more dynamic: Germany is weak in the restructuring of the electricity market

Germany likes to see itself in a pioneering role in the expansion of renewable energies.

Other Europeans more dynamic: Germany is weak in the restructuring of the electricity market

Germany likes to see itself in a pioneering role in the expansion of renewable energies. However, a current study confirms that the country is moving too slowly. Other European countries are now passing. The reasons given are politics and numerous regulations.

When it comes to restructuring the electricity market, Germany is not progressing as quickly as other European countries. This is the result of a study by the British Association for Renewable Energy and Clean Technology (REA) together with the energy management company Eaton. The experts evaluated and compared the framework conditions for the energy transition in 13 European countries. According to this, Germany can maintain its rating from the previous year, but slips to last place because other countries have improved more since the survey in 2021.

The so-called Energy Transition Readiness Index (ETRI) evaluates the countries in terms of social support for the energy transition, their ability to use new technologies and business models, and the flexibility of the market. On a scale of one to five, Germany scores a 3 - as do Ireland, Italy, Poland, Spain, Switzerland and Great Britain. Denmark, France, the Netherlands, Norway and Sweden reach level 4, only Finland reaches the highest level 5. All countries have ambitious emission reduction targets. But the higher-rated countries are said to have flexible markets "that better ensure fair, transparent and easy access," it said. On the other hand, there are obstacles to investment in countries with lower ratings.

Overall, the study sees a strong consensus for the energy transition in Germany, but the implementation of political and regulatory changes is slow. One of the reasons is that decision-making is subject to a wide range of local political interests. According to the experts, Germany needs more resources to increase the flexibility of the electricity market and thus achieve the goals of the energy transition.

Germany is the largest electricity market among the countries examined. Countries such as Norway or Switzerland therefore cover their needs with renewable energies better in percentage terms, although Germany produces most of the electricity from renewable energies, the experts write. In 2021, the share of German electricity consumption from renewable energies was 41 percent. By the year 2030, according to the will of the federal government, the proportion of electricity generated from renewable energies in Germany should reach at least 80 percent.

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