Germany

Index rank 11

Energy Sustainability Index Rankings

 2010  2011  2012  Trend
Energy Performance  21  14  14 
Energy Security  10  13  11 
Social Equity  14  12  11 
Environmental Impact Mitigation  63  44  41 
       
Contextual Performance  15  12  12 
Political Strength  14  15  14 
Societal Strength  17  17  13 
Economic Strength  21  19  19 
       
Overall Rank  18  10  11 
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Fossil Fuel Resources

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Key Metrics

Industrial sector (% of GDP) 28.6
TPEP / TPEC  (net energy importer) 0.35
Emission intensity (kg CO2 per USD) 0.83
Energy affordability (USD per kWh) 0.32
GDP / capita (PPP, USD); GDP Group 36,013 (A)
Energy intensity (million BTU per USD) 0.01
CO2 emissions (metric tons) / capita) 9.36
Population Access to Electricity (%) 100.0
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Index Commentary

Germany showed a very stable and overall strong performance across all dimensions and drops by one place in the Index. Despite small improvements since last year, environmental performance remains weak (rank 41) with relatively high energy and emissions intensity per GDP per capita and high CO2 emissions from electricity and heat generation. Slight improvements can be noted in energy security due to an increased wholesale margin on gasoline and increase of its oil reserve stocks. Better results in social equity are driven by an improvement in the quality and affordability of electricity supply. An improvement in societal strength is supported by a rise in the education indicator.

Trends and Outlook

The most recent policy development in Germany, initiated before 2010, is the German Energy Transition. The goal of the German Energy Transition of 2011 is a strong increase in power generation from renewable sources, a reduction of primary energy usage and CO2 emissions. Furthermore, following the accidient in Fukushima (Japan) in March 2011, the government made the decision to completely abandon the use of nuclear power by 2022. Eight out of 17 facilities were closed immediately, while the remaining nine nuclear power plants will be phased out gradually to ensure system stability. However, the decision to phase-out nuclear by 2022 constitutes a challenge to Germany’s energy mix. To achieve the increase in power generation from renewable sources, the Renewable Energy Law (EEG) guarantees a fixed price independent of demand and supply for renewable power plants. The law first came into effect in 2000 with revisions in 2006, 2008, and 2012. Even though there are visible successes, the law is disabling free market mechanisms as it allows the sector to rely on subsidies rather than encouraging competition for innovative, efficient and inexpensive technologies. Investors are reluctant to invest in new conventional power plants, which still will be needed to secure future energy demand. Subsidies for renewable energy and investments in grid infrastructure to integrate the increasing amounts of volatile renewable energy into the system have led and will continue to lead to higher electricity prices. Policymakers must set the right framework towards a free and efficient European electricity market to limit the burden. Furthermore, the European emission trading systems is an important tool to tackle climate goals. With a European effort in energy politics, particularly when it comes to future market designs, investments in conventional power plants could be enabled to ensure security of energy supply.

Notes

1) Data for shale gas resources not available; 2) Data for shale oil is for resources in place