As of: September 2011

Questions and answers about transforming our energy system

Germany is making the transition to the age of renewable energies and has started the rapid phasing out of nuclear energy. The cabinet decisions adopted by the German government have created the preconditions for these processes. This document provides answers to the most important questions being asked about Germany’s transformation of its energy system.

General issues

1. What are the key points/objectives of the German government’s Energy Concept? What kind of time frame does it envisage?

   The objectives are a rapid transition to the age of renewable energies and the phasing out of nuclear energy by the end of 2022. The intention is for renewable energies’ share of power generation to rise from the current 17 percent of power consumption to at least 35 percent in 2020. The German government will strive to ensure this share is 50 percent by 2030, a figure that should rise to 60 percent by 2040, then 80 percent by 2050.

2. How will the success of the German government’s new Energy Concept be measured, and how will its implementation be monitored?

   The German government will review the implementation of its programme of measures annually on the basis of a rigorous monitoring process. For this purpose, it will instruct a group of competent institutions (including the Working Group on Energy Balances, the Federal Statistical Office, the Federal Network Agency, the Federal Environment Agency, the Federal Cartel Office, and the Federal Office of Economics and Export Control) to submit expert opinions on central energy policy issues each year.

3. How can the basic energy supply be assured?

   The electricity supply remains assured, even though the country's seven oldest nuclear power stations and the Krümmel nuclear power station have been shut down.

   Increasingly, we have been producing more electric power in Germany than we can ourselves use. As a result, Germany's electricity exports have risen over the past years. And part of those exports consist of electricity from German nuclear power stations. The permanent shutdown of some of those nuclear power stations thus provides no reason for concern. Germany's remaining reserve capacities are sufficient to take the place of the eight decommissioned nuclear power stations.

   In the coming years, the nine nuclear power stations remaining in operation in Germany will gradually be replaced by 17 fossil-fueled power stations that are currently under construction, as well as by growing renewable-energy capacities and additional highly efficient, quick-response gas-fueled power stations.

4. We want Germany's electricity supply to remain affordable and – especially – reliable. Will there really be no possibility of power failures in winter?

   Germany's electricity supply is reliable and is going to remain reliable. Our existing, available reserves suffice to compensate for the shutdowns of the country's seven oldest nuclear power stations and of the Krümmel nuclear power station. In the coming years, the nine nuclear power stations remaining in operation in Germany will gradually be replaced by 18 fossil-fueled power stations that are currently under construction, as well as by more efficient use of electricity, added renewable-energy capacities and up to 10 new highly efficient, quick-response gas-fueled power stations. Increases in the amount of energy we save will directly reduce our requirements for new power stations, while automatically increasing renewable energies' share of our power supply. What is more, by 1 September 2011 the Federal Network Agency will decide whether one of the nuclear power stations whose power-operation authorisation expires with the entry into force of the Thirteenth Act amending the Atomic Energy Act is to be kept in an operational condition for power generation through 31 March 2013 (reserve operation). The power station under such consideration has a suitable location and grid connection for such operation. As a result, the Federal Government has taken all measures necessary to assure a reliable electricity supply.

5. Why has yet another Energy Concept been adopted?

   The German government has not adopted a new Energy Concept, but measures with which the existing Energy Concept can be implemented more rapidly: In view of the nuclear disaster at Fukushima, it was necessary to reconsider the role of nuclear energy once again. We want to phase out nuclear energy more rapidly than originally planned.

6. Plans call for the basic structure of our energy system to change. When will our energy system be completely free of fossil fuels?

   Along with a desire to avoid the risks associated with nuclear-based energy generation, the reasons why we are transforming our energy system include the need to protect the earth's climate, a desire to reduce our extreme dependency on energy imports and a desire to accelerate the pace of technological innovation. In keeping with our ambitious climate-protection goals (reducing our greenhouse-gas emissions by 40 % by 2020, and by 80 % to 95 % by 2050, with respect to their 1990 levels), we want to increase renewable energies' share of our electricity supply from its current level of 17% (as of 2010) to at least 35% by 2020 and to a total of at least 80 % by 2050. Furthermore, we want to increase our energy productivity by an average of a full 2 % per year, and to cut Germany's total energy requirements in half by 2050.

   The necessary transformation of our electricity supply will have a considerable impact on Germany's energy-sources mix and on its energy infrastructure (networks, storage facilities). Increasingly, the energy sources that predominate today will "solely" have the purpose of compensating for fluctuations in energy generation from renewables. For that purpose, in future we will continue to need highly efficient, quick-response and CCS-capable (CCS = carbon capture and storage) gas and steam power stations.

7. What energy sources (wind, solar, water, geothermal, gas, coal, etc.) can we use to support the transformation of our energy system?

   In general, all energy sources – with the exception of nuclear power – are available for the transformation of our energy system. To be able to replace our nuclear power stations' generating capacities completely within 11 years, we will need new renewables-based generating systems, and we will need to significantly advance our energy efficiency, an area in which there is still much potential for improvement. We plan to increase renewable energies' share of our electricity supply from its current level, 17% (2010), to at least 35% by no later than 2020. We then expect that share to grow to at least 50 % by 2030 at the latest, and to at least 80 % by no later than 2050.

   In future, most of our electricity supply will come from wind energy (from both onshore and offshore systems) and from solar energy. Those are also the energy-sector areas that have experienced the strongest growth in recent years. In addition, biomass systems and – to a lesser extent – geothermal and hydroelectric systems will contribute to our electricity supply in 2050. The remainder of our electricity needs will continue to have to be met via fossil-fuelled power stations. To compensate for fluctuations in energy generation from renewable energies, we plan to rely solely on highly efficient, quick-response, CCS-capable power stations (gas and steam power stations). Wherever possible, such power stations will also feature combined heat and power (CHP) generation.

8. Could it be that the energy system transformation is coming too late? What do the forecasts say about the development of CO2 emissions, for example?

   The measures planned will allow CO2 emissions to be cut at least 80 percent by 2050. This is regarded as the minimum reduction the industrialised countries will have to contribute if the European Union’s goal of limiting the global temperature rise to a maximum of two degrees Celsius is to be achievable.

9. Are there hopes that the switchover to renewable energies will also stimulate the German economy, which is well positioned in this field?

   Both the expansion of renewable energies and the enhancement of energy efficiency will lead to the development of new products, new technologies and new export opportunities. German businesses are well positioned in these fields today. They will enjoy considerable opportunities for growth. The renewable energies sector already employs about 370,000 people. By 2030, the number of people employed in the industry could rise further to more than half a million, depending in particular on the development of energy prices and how successful the German renewable energies sector is at exporting its products and services.

10. Doesn't the transformation of our energy system amount to an enormous risk for an industrialised country that wishes to boost its economic growth?

    In light of the economic and political developments taking place around the world, a "business as usual" approach would present much greater risks. We simply cannot afford to "stick our heads in the sand" and passively wait out the coming storms. In Asia, energy use is continually increasing. Energy prices have been rising, as our oil, gas and coal reserves have been dwindling and the number of energy exporters providing reliable energy supplies has been shrinking. The first step toward achieving and safeguarding an affordable, environmentally friendly and reliable energy supply is to reduce our energy consumption – and Germany, in all of its sectors, is far from having exhausted the potential for enhancing energy efficiency. In a next step, we must move to meet our remaining energy needs primarily via geothermal, wind, biomass, hydroelectric and solar systems. That approach will give us a technological edge, will enhance the attractiveness of our industrial sectors and will protect our leadership in the key markets of the future.

11. How long-term are the German government’s plans in the energy sector, and how far can they realistically look into the future at the present point in time?

    The Energy Concept sets out an overall strategy for four decades – up to 2050.

12. What sort of framework (laws, funding, etc.) are we using to promote use of such technologies?

    In its efforts to accelerate implementation of its energy concept following the Fukushima disaster, the Federal Government has come forward with an extensive package of measures. The centrepieces of the transformation of our energy system include the Renewable Energy Sources Act (EEG), the Energy Industry Act (Energiewirtschaftsgesetz - EnWG), the Grid Expansion Acceleration Act (Netzausbaubeschleunigungsgesetz - NABEG), relevant changes in construction laws and an amended act for establishing a special "Energy and Climate Fund".

    The EEG features the following key elements:

    • Retention of the following basic philosophy: priority feed-in, grid owners' obligations to permit grid-connection on application, and fixed prices for electricity feed-in;
    • Introduction of a market premium designed to provide incentives for direct selling of electricity from renewable energy sources
    • Flexibility premium to provide incentives for gradual system integration: this subsidises the additional investments required for flexible, market-oriented operation of biogas systems (storage systems, additional system capacities).

    With regard to wind-energy use on land, an amendment of construction-planning law will provide greater legal certainty for designation of new wind-energy sites and for repowering, i.e. for replacement of smaller wind turbines with larger, more efficient ones, at existing sites. What is more, the basis for construction of offshore wind farms has been further improved (with, inter alia, collective grid connection of offshore wind farms, and a EUR 5 billion support programme of KfW Bankengruppe for the first 10 offshore wind farms).

    In addition, the Combined Heat & Power Act (KWKG) is already promoting construction and modernisation of CHP systems and construction of new heating networks. In connection with amendments of energy-industry laws, we have further improved the conditions for use of CHP systems (the period for commissioning of new systems has been extended to the end of 2020, and the annual cap on support for CHP systems has been eliminated).

    What is more, the Federal Government is planning to launch a programme for promoting highly efficient, CCS-capable power stations. That support programme is to be aimed at electricity suppliers with a share of less than 5 % of Germany's electricity-supply market. Under European law, relevant investment subsidies of up to 15 % may be provided throughout the period 2013 – 2016. As of 2012, the proceeds from emissions trading are to be collected within the Energy and Climate Fund and to be made available for additional measures relative to Germany's transformation of its energy system and to national and international climate-protection efforts.

    The "Market Incentive Programme" (Marktanreizprogramm; MAP) is the Federal Government's central instrument for promoting renewable energies in the heat sector. Already a decade old, the MAP supports investments in renewables-based heat-supply technologies. It has been providing important impetus for market penetration of key technologies. Plans call for gradual increases in the MAP's funding resources. As of 2013, the programme is to have annual funding resources of some EUR 480 million.

    Via the National Climate Initiative, we plan to continue providing effective economic incentives for national climate protection projects, for creation of relevant networks involving industry and for measures for enhancing efficiency. Over the past few years, the National Climate Initiative has achieved significant successes – for example, in the areas of mini-CHP systems and of commercial cooling and refrigeration systems.

    Special compensation arrangements are in place to ease the burden on electricity-intensive companies in connection with EEG-related cost allocations.

13. To what extent is energy-saving being promoted?

    In the areas of of energy-saving and energy efficiency, the Federal Government is relying on three mainstays: require – promote – inform.

    In order to double the rate of renovation and modernisation in the building sector, the Federal Government plans to tighten minimum-efficiency standards gradually and to introduce a long-term renovation schedule for existing buildings. As a result, efforts in this area will not be limited to tightening of regulatory law (an amendment of the Energy Saving Ordinance (Energieeinsparverordnung) is to be introduced in 2012). In addition, the economic incentives for energy-efficiency-oriented building modernisations are to be significantly improved. To that end, annual funding available under the CO2 Building Rehabilitation Programme is to be increased to EUR 1.5 billion.

    And a broad spectrum of measures is in place for the purpose of enhancing energy efficiency. Relevant examples include the funding programmes for:<7p>

    • Commercial refrigeration systems, in the framework of the National Climate Initiative. The measures carried out to date have produced electricity savings averaging 40 %.
    • Mini-CHP systems, also in the framework of the National Climate Initiative. Due to a lack of budget funding, that programme has currently been suspended, however. It has achieved average CO2 reductions of more than 40 % and – in an especially significant orientation – has promoted the market introduction of pertinent new products for one- and two-family homes, which account for 80 % of existing buildings.

    The third pillar – information – also comprises an extensive range of efforts. For example, energy consultations and energy-saving measures are being supported for small- and medium-sized enterprises (SMEs). In the framework of the "climate looking for protection" ("Klima sucht Schutz") campaign, an effort of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), consumers can obtain pertinent advising online. In the "electricity-saving check" ("StromsparCheck") programme, long-term-unemployed persons retrained as electricity-saving facilitators visit low-income households and provide advice on ways to save energy – and, thus, to reduce electricity and gas bills.

14. What action can each individual take to organise their day-to-day routine more energy efficiently and conserve energy over the long term?

    One thing that is important is to use economical electric devices, if possible those rated in energy performance class A++. It is quite easy to prevent devices from wasting energy while left on stand-by with a plug multiplier that allows several devices to be switched off at once. Energy can also be conserved by changing heating habits. The heating costs in a property can be cut by approximately six percent if the thermostat is turned down by one degree.

15. What measures will the German government itself take to contribute to greater energy efficiency, e.g. within the administration?

    The German government will act as an exemplar when it comes to the management of both its existing and new buildings. The amount of heat required in Federal Government properties should fall 20 percent (compared to 2010 levels) by 2020. Germany’s stock of public buildings is to be almost climate-neutral by 2050. The Energy Conservation Programme for Federal Government Property will be continued. As of 2012, all new buildings constructed for the German Federation will comply with what is known as the nearly zero-energy building standard.

    One example is the construction of the new Federal Ministry for the Environment, Nature Conservation and Nuclear Safety in Berlin. As of the summer of 2011, the Ministry will be the first federal authority to work in a nearly zero-energy, passive building. This is a model project because most of the passive buildings that have been built up until now have been detached houses on greenfield sites.

16. Will federal ministers set a good example and save energy personally as well, something that will require them to switch over to electric official cars in the long term?

    The German government is setting a good example: its current vehicle fleet will gradually be replaced with electric vehicles. As of 2013, ten percent of its new vehicles will emit less than 50 grams of CO2 per kilometre.

17. What is the Federal Government doing in order to reduce burdens on electricity-intensive industry?

    The some one million persons employed in Germany's electricity-intensive sector make an important contribution to value creation in our country. And it is clear that Germany needs to remain an important industrial centre that offers competitive electricity prices. The Federal Government plans to make use of the opportunity, as of 2013, to compensate electricity-intensive industries, in competitive international markets, for electricity-cost increases resulting via emissions trading. Such compensation is allowed by the European Emissions Trading Directive, in Art. 10a (6). The European Commission has agreed to enlarge the pertinent environmental aid framework, a move that is a necessary prerequisite for any national compensation payments. What is more, the amendment of the Renewable Energy Sources Act (EEG) that will enter into force in 2012 will expand the special compensation arrangements aimed at easing the burdens on electricity-intensive companies.

18. In part, the trabsformation of Germany's energy systems will hinge on the German public's willingness to invest in energy efficiency of buildings and to tolerate nearby wind farms. How is the Federal Government dealing with the challenges inherent in such dependency?

    The some one million persons employed in Germany's electricity-intensive sector make an important contribution to value creation in our country. And it is clear that Germany needs to remain an important industrial centre that offers competitive electricity prices. The Federal Government plans to make use of the opportunity, as of 2013, to compensate electricity-intensive industries, in competitive international markets, for electricity-cost increases resulting via emissions trading. Such compensation is allowed by the European Emissions Trading Directive, in Art. 10a (6). The European Commission has agreed to enlarge the pertinent environmental aid framework, a move that is a necessary prerequisite for any national compensation payments. What is more, the amendment of the Renewable Energy Sources Act (EEG) that will enter into force in 2012 will expand the special compensation arrangements aimed at easing the burdens on electricity-intensive companies.

19. Many people in other countries are asking whether Germany's transformation of energy systems can succeed. How positive has the reception for Germany's phase-out of nuclear power been in other countries?

    Needless to say, as a pioneering country, we are being watched very closely indeed. At the same time, being a pioneer in this area means being a country that sets standards and that enjoys market leadership in a centrally important industrial sector. What is more, the Member States of the European Union, and our partners in international co-operation, agree that every country has the right to choose its own energy-supply systems.

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Research

1. In view of the phasing out of nuclear power in 2022, how much additional money will have to flow into research on renewable energies and energy efficiency in future?

   The German government has always devoted massive funding to research and development work on renewable energies. It will be expanding this funding in the planned 6th Energy Research Programme. Approximately €1.27bn has been made available for the funding of research and development work on modern energy technologies in 2010/2011, of which €447m is earmarked for renewable energies.

   One crucial aspect is research into innovative storage technologies. The German government is providing up to €200m for the Promoting Energy Storage Facilities Initiative in the next few years. Modern energy storage options are indispensable, in particular because power from wind and solar plants is not necessarily needed at the times when it is generated.

   Further funding is being granted by the German government to research on, for example, wind energy, photovoltaic power generation and bioenergy. The German government is doubling the research expenditure on electric cars to €1bn for the years from 2011 to 2013 in order to advance a technological breakthrough.

2. Who is to receive support for the development of new energy storage facilities? What selection criteria are being envisaged?

   With its Promoting Energy Storage Facilities Initiative, the German government is supporting research projects aimed at developing storage technologies for power, heat and other forms of energy. In the next few years, €200m will be available under this initiative.

   The funding regulations set out detailed criteria that any research, above all into stationary energy storage, will have to satisfy. Support will be available for industry-led consortium projects and projects conducted by universities and research institutions. The funding criteria include, above all, the academic excellence of the research project and its relevance to the goals of funding policy. The Federal Ministry of Economics and Technology, the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, and the Federal Ministry of Education and Research are responsible for deciding on applications for funding.

3. Are concrete deadlines being set for the market introduction of storage technologies?

   The bigger the role played by renewable energies, the more important storage facilities will become. However, fundamental research is still ongoing on many storage technologies, while others are only in development. The German government’s aim is to accelerate their development and bring about the rapid market introduction of new energy storage facilities. The German government expects its research funding to impart important stimuli. However, technological breakthroughs cannot be delivered to order. Nevertheless, the German government is making every effort to create the best possible conditions for the research and business communities in Germany.

4. Will Germany be able to rely mainly on German know-how as it implements new energy concepts, or will we have to resort to resources (materials, research, experts and workers) from abroad?

   German enterprises and technologies will be the backbone of the new energy concepts. This does not rule out the possibility that individual projects or schemes may be carried out with foreign participation. Today, Germany is already a lead market for renewable energy technologies. Thanks to massive investment in research and education, its universities and non-university institutions are among the best in the world. This is true with regard to both fundamental and applied research. Germany’s beacon institutions include its nine top universities and the Helmholtz Association energy research centres at Jülich and Karlsruhe.

   International cooperation is particular necessary on major projects like Desertec (solar energy from the Sahara).

5. Why does so much money have to be invested in energy research?

   Many innovative discoveries that have a major impact on the energy supply come out of research. For example, applied research on wind turbines has helped to ensure that new systems produce a great deal more power than older ones. Researchers in the field of nanotechnology (the study of atomic and molecular structures) are developing new material structures that promise a breakthrough in the development of efficient, yet very light batteries.

6. Why is research into energy storage necessary?

   If we primarily obtain our power from renewable energies, energy storage will be needed on a large scale. For wind and sunlight, in particular, are not always available at the moment when a great deal of power is needed. Pumped-storage plants are one good option. However, they require tremendous amounts of space because artificial lakes have to be created at high altitudes. And this space is not available everywhere.

   Alternatives – such as hydrogen conversion, large batteries and underground compressed air energy storage facilities – are hardly being used as yet, especially because their costs are too high. Apart from this, they may throw up ecological problems. In consequence, it is necessary to carry on doing intensive research into these technologies.

7. There is nothing new about sending power along cables, why does research have to be conducted in this field?

   It will not be enough to erect more power pylons – especially because there are limits to what can be achieved in this way. Research is therefore being done into ‘smart grids’, i.e. power grids that transport energy more flexibly and efficiently. One major problem lies in transporting power over great distances, from the Sahara for instance. The losses from normal high voltage transmission lines would be much too high, so research is now being conducted to ascertain whether direct current transmission is more efficient.

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Nuclear energy

1. What were the most important reasons why the Federal Government decided to phase out nuclear power completely by 2022?

   The impacts of the recent earthquake on Japan's nuclear power stations sparked a change in attitudes toward nuclear energy use in Germany. In light of those events, the Federal Government, acting in agreement with the Minister-Presidents of those Länder in which nuclear power stations are operated, had the reactor safety commission, working in close co-operation with the competent nuclear supervisory authorities of the Länder, conduct a safety review of all German nuclear power stations. In addition, working via an ethics commission on "a safe energy supply" ("Sichere Energieversorgung"), it launched a societal discourse on the risks of use of nuclear power and on the potential for making an accelerated transition into the age of renewable energies.

   The reactor safety commission found that Germany's nuclear power stations are highly robust facilities. The ethics commission found that the reality of a reactor accident has a substantial impact on the way the risks of nuclear-power use are assessed, and that the possibility that such an accident could prove unmanageable is of central importance in Germany's national framework.

   Also taking account of the findings of those commissions, the Federal Government decided to phase out use of nuclear power for commercial electricity generation at the earliest possible time - on a staggered schedule. To that end, on 30 June 2011, the German Bundestag (parliament) passed the Thirteenth Act amending the Atomic Energy Act (Dreizehntes Gesetz zur Änderung des Atomgesetzes). That act then entered into force on 6 August 2011.

2. What is the schedule for the phase-out?

   We plan to phase out nuclear-power use for commercial electricity generation in Germany gradually, and completely, by no later than the end of 2022. The country's seven oldest nuclear power stations, which were already shut down during a provisional three-month operational shutdown period, and the Krümmel nuclear power station, will now remain permanently decommissioned. The final dates for the other nuclear power stations are as follows: 2015, Grafenrheinfeld; 2017, Gundremmingen B; 2019, Philippsburg 2; 2021, Grohnde, Gundremmingen C and Brokdorf; and 2022, the three youngest nuclear power stations, Isar 2, Emsland and Neckarwestheim 2.

3. How will the decision for phase-out of nuclear power in Germany affect Germany's energy concept?

   The energy concept will remain the guideline for future German energy policy. The change in energy policy was already enshrined in Germany's "Energy Concept 2010" ("Energiekonzept 2010"). The aims and the orientation of that energy concept remain in place. Relevant measures – especially measures relative to network expansion, to expansion of wind-energy use and to upgrades of the country's power-station sector – are now being implemented on an accelerated schedule, however.

   Numerous studies have found that transforming Germany's energy sector, without any reliance on nuclear power, is possible and, in the long term, can offer major opportunities and economic benefits. In the medium term, the gap in Germany's electricity supply resulting from decommissioning of nuclear power stations is to be compensated for by new, efficient fossil-fuelled power stations; by expansion in use of renewable energies, and by improved market integration of such energies; and by improvements in energy efficiency.

4. Will the decommissioning of all nuclear power plants by 2022 result in the final clarification of the questions about a final repository for Germany’s nuclear waste as well?

   The generations that use nuclear energy must also make provision for the storage of radioactive waste. This will involve the continuation of exploration activities at the Gorleben site, which must be approached in an open-minded fashion, as well as a procedure to determine general criteria for the geological suitability of potential locations and identify possible alternative waste management options. The German government will put forward a proposal for legislation on these matters by the end of the year.

5. How does Germany plan to fill the 23% gap in its electricity supply that will result from decommissioning of nuclear power stations?

   At present, Germany is able to fill the gap, with existing reserve capacities and moderate imports, caused by current nuclear-power-station shutdowns.

   In spring 2011, for example, a total of 12 of 17 nuclear power stations were shut down for a short time. The situation in the next two winters will be more challenging than that spring situation, however. Nonetheless, we fully expect the German energy sector to be able to master those challenges. The German nuclear-generating capacities that will gradually go offline in the period through 2022, capacities that in the past generated some 23 % of the country's electricity, are to be compensated for via a mix consisting of additional renewables-based capacities; construction of additional fossil-fuelled power stations (including already planned power stations) - ideally, power stations with combined heat and power (CHP) generation; considerable gains in energy efficiency; and intensified use of the potential inherent in the international electricity network.

6. What costs will accelerated phase-out of nuclear power entail?

   The phase-out will not be free of charge. Current studies point to medium-range electricity-price increases, i.e. increases directly allocatable to the accelerated phase-out, on the order of no more than one cent per kilowatt-hour. In that light, the Federal Government is seeking to make the transition into the renewable-energies age feasible and economically sustainable.

7. Is Germany actually capable of taking the measures (legislative, infrastructure, economic) needed if it is to cope with the phasing out of nuclear energy by 2022?

   The phasing out of nuclear power constitutes a fundamental transformation of the energy system in Germany. Everyone will have to do their bit. A start has been made on the requisite legal measures. However, it is also decisive that the population accepts the changes that are being made: new power lines, new conventional power plants and the expansion of renewable energies. In addition to this, it is important that everyone uses energy as economically as possible.

8. What should be done to prevent Germany importing electricity from nuclear power plants in other countries in future?

   Importing electricity from nuclear power plants in other countries is not an alternative. Modern, highly efficient coal and gas-fired power plants will facilitate the more rapid transition to a power supply based on renewable energies. Nevertheless, electricity will continue to be imported and exported because Germany is part of the European internal electricity market. Even so, electricity from renewable energies will enjoy priority.

9. Will the accelerated phase-out have an impact on Germany's climate protection objectives?

   In principle, phase-out of nuclear-power use for commercial electricity generation is climate-neutral - when seen from a European-wide perspective. On the one hand, the phase-out will lead to higher CO2 emissions in Germany's electricity sector. At the same time, that increase will be completely offset by emissions trading in other sectors, in both Germany and Europe. As a result, greenhouse-gas emissions in Europe will remain constant, even in the short term, because emissions trading establishes an EU-wide cap on greenhouse-gas emissions. What is more, the EU-wide cap was defined also in light of the original German decision to phase-out nuclear power. The German climate protection objectives remain completely valid.

10. What impact will the change in energy policy have on Germany's ambitious climate protection objectives? Can they be maintained?

    We plan to achieve our national climate protection objectives even with accelerated phase-out of nuclear power use. In the short term, CO2 emissions in Germany's electricity sector may rise. In the medium term, they will decrease all the more markedly, however, as more and more old, CO2-intensive power stations are replaced with new plants for electricity generation from wind, the sun, biomass and water power, as well as by highly efficient, quick-response fossil-fuelled power stations. That conclusion is supported by the energy-scenario calculations the Federal Government commissioned in connection with preparation of its energy concept.

11. Germany's fast phase-out of nuclear power is primarily a reaction to the Fukushima disaster. In terms of safety, what is the point of shutting down German nuclear power stations when other European countries are still using nuclear power?

    Germany has always placed high priority on having an independent, safe energy supply system, and that policy has been a great success. For a major industrialised, export-intensive country such as Germany, which has few natural resources, is densely populated and must rely on technology, there is no substitute for such a policy. That policy conflicts neither with our integration within the European Single Market nor with our energy trading with our neighbours. A large market such as the Single Market presents a great many advantages in terms of prices, supply reliability, network stability, use of renewable energies and dissemination of efficiency technologies. Every country within the European concert of nations has the right to choose its own energy policies. As Germany makes the changeover in its energy system, Germany's future role will be to highlight alternatives to use of nuclear power and of fossil fuels - and, thus, to inspire others to take a similar approach.

12. After the Chernobyl disaster, Germany put its own nuclear plans on hold, while some of its neighbours strongly expanded their nuclear sectors. After Fukushima, can we see any similar development in the European Union? Isn't Germany's decision to discontinue use of nuclear power an overly hasty, emotional decision?

    With its energy concept, and over the past year, Germany has decided to base its future energy supply on renewable energies. That decision is backed by a broad societal consensus in Germany. As a consequence of our decision to accelerate the phase-out of nuclear-power use, we will now have to considerably accelerate the transformation of our energy-supply system. While that requirement presents major challenges, it also holds out new opportunities.

    The decisive reasons entering into the new policy are rational ecological, economic and ethical reasons. The profound restructuring of our energy system will provide opportunities for later generations. Nonetheless, it will not be easy, in practice, to carry out the transformation. But if we accept the challenge, the transformation will open up new technological and economic perspectives for Germany's competitiveness as an industrial centre and as an exporting country (for example, in the areas of energy-efficient products, renewable energies and highly efficient power stations). Every country has the right to choose its own energy policies. At present, 14 of the EU's 27 Member States operate nuclear power stations.

13. EU Commissioner Oettinger has stated that Germany's nuclear phase-out can succeed only in combination with significant improvements in Germany's energy infrastructure. What impacts will Germany's decision have on its European neighbours?

    Expansions of Germany's energy infrastructure (networks, power stations, storage facilities) will play a key role in the transformation of our energy system. For that reason, the energy concept provides for an entire range of measures aimed at accelerating necessary infrastructure improvements. Furthermore, the now-approved energy package includes important measures relative to accelerated expansion (especially) of networks and of combined heat and power (CHP) generation.

    In future, Germany will continue to work toward the aim of maintaining the necessary capacities in order to be able to meet all of its own electricity requirements. At the same time, Germany is located in the heart of the EU Single Market, in which trans-boundary electricity trading, with the electric-load flows that entails, is an everyday reality.

14. Does Germany plan to try to convince other countries to phase-out nuclear power as well?

    Every country has the right to choose its own energy policies. In the framework of its international co-operation, Germany will continue to work for the highest possible safety standards in nuclear-power use, and it will continue to participate in relevant international exchanges. As Germany makes the changeover in its energy system, Germany's future role will be to highlight alternatives to use of nuclear power – and thus to inspire others to take a similar approach. The heads of state and government of the EU's Member States have agreed to subject all European nuclear power stations to safety reviews (so-called "stress tests").

15. Even the conclusive phasing out of nuclear power in 2022 will not protect us from accidents that may occur elsewhere in Europe. Is Germany embarking upon an expensive, but ineffective course of unilateral action?

    Germany is setting standards with its Energy Concept – for the EU and the whole world. The German Federal Chancellor, Angela Merkel, placed nuclear safety on the agenda at the G8 Summit. Many countries are emulating our example and taking a long, hard look at their nuclear power plants. The EU has agreed on a first stress test for all European nuclear power plants. On 6 June 2011, the German government adopted a draft act intended to accelerate the phasing out of power generation from nuclear energy. It will respect the decisions taken by other states that wish to continue using nuclear energy. In any case, it is necessary to analyse the risks of accidents comprehensively and control them as effectively as possible. Germany will therefore continue to contribute its experience and skills internationally to ensure accidents are prevented.

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Wind/solar energy

1. The wind and the sun are energy sources that are impossible to control. How can supply be guaranteed with such uncertain sources?

   Over the medium term, conventional power plants, which can provide power at any time, will continue to play a central role in security of supply. Thanks to the expansion of our grids, the application of load management, the improvement of power output forecasts for wind and solar energy, and the development of storage technologies, a power system overwhelmingly based on renewable energies will ensure our supply of power is secure.

2. Solar and wind power are only produced at certain times: is it actually possible to store this power for longer periods?

   Yes, the storage of power from renewable energy is possible to a limited extent today. Energy storage facilities, such as pumped-storage plants, are already economic as well. Nevertheless, fresh technological developments are needed to make new energy storage facilities marketable. With its Promoting Energy Storage Facilities Initiative, the German government is supporting research und development work on several technologies for the storage of power, heat and other forms of energy. Fundamental research is still being done on some of these technologies, while others are at the development stage, including redox flow batteries and the conversion of renewably generated power into storable chemical energy in forms such as hydrogen or methane. The same is true for thermally optimised compressed air energy storage facilities, which increase efficiency by retaining heat until it can be used again.

3. Where and how can power that is generated at offshore wind farms in the North Sea, for example, actually be used in such a way that this is profitable and the costs incurred (e.g. for the construction of new power lines) do not make this form of energy unaffordable?

   Offshore wind energy must get to where it is needed: the industrial centres in the interior of the country. If this is to happen, we need to build new power lines without delay. The construction of further offshore wind farms will not be profitable as long as their energy can only be fed into the grid to a limited extent, if at all. It is therefore also necessary to expand our infrastructure so that we can distribute environmentally friendly power economically – and become more independent of expensive, conventional forms of energy. The reverse is therefore true: Investment in the expansion of grids will ultimately be cheaper than not expanding them.

4. Is it possible to anticipate how power prices will develop after the conclusive phasing out of nuclear power?

   No. Power prices will not just be influenced by the phasing out of nuclear power, but also by other factors – such as fuel prices, the development of power provision in other countries, and the expansion of renewable energies and grids.

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Construction of new power lines

1. How expensive will it be to construct new power lines, and how long will this take?

   According to figures from the German Energy Agency (dena), between 1,500 and 3,600 km of new extra high voltage power lines will have to be built by 2020 – something that will not be done by the state, but by the transmission grid operators. The actual scale of the expansion required will be determined on the basis of current scenarios, and specified in concrete terms by the transmission grid operators and the Federal Network Agency in the grid development plans that are to be drawn up in future. It is not possible for the costs to be estimated with any certainty, but they will ultimately be incorporated into the price of electricity.

2. How will new power lines be pushed through in the face of local resistance among the population?

   The German government will rely on intensive dialogue with the population. Everyone should understand why we need new power lines. What is clear is that people cannot always just say ‘No’ – after all, it is not feasible for more renewable energies to be fed into our grids if those grids are never expanded. There is no way of arguing for the one without accepting the other.

3. What exactly is meant by ‘improved general conditions for the expansion of storage capacities’?

   In the longer term, the German government wants to exempt energy storage facilities from grid charges in order to create stronger incentives for investment. The development of new storage technologies is to be given targeted support. However, there is also the question of gaining acceptance for storage facilities. These are integral to the transformation of our energy system and needed in order to create an energy system based on renewable energies that will meet our future needs. The German government is appealing to the Länder and local authorities to give such projects their political backing and campaign positively for the expansion of storage capacities.

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Modernisation of building stock

1. Will energy-saving (building renovations, etc.) play a role in the transformation of Germany's energy system?

   Energy-saving and energy efficiency are central components of Germany's energy-policy transition. They are also a key basis for Germany's ability to meet its ambitious climate protection objectives and achieve its aims for expanded use of renewable energies. We want to increase our energy productivity by an average of a full 2 % per year, and to cut Germany's total energy requirements in half by 2050. By 2050, we also want our electricity consumption to decrease by one-fourth. One emphasis of such efforts will be on the building sector, which accounts for some 40 % of Germany's energy consumption and about one-third of its CO2 emissions. In addition, we are aiming to double the building-renovation rate to 2 %, from its present level of 1 %.

2. The modernisation of building stock and the expansion of power grids will cost a lot of money. Where is this money supposed to come from?

   Switching over to an energy system that is based completely on renewable energies requires financial resources that are assured over the long term. The German government is therefore financing all measures intended to increase energy efficiency from a special fund - the Energy and Climate Fund.

   So far, this Fund has been accumulated using the additional profits the energy suppliers were able to expect because the operating lives of their nuclear power plants had been extended. In addition to this, surplus revenues from the auctioning of emissions allowances have been channelled into the Fund. The operating lives of the nuclear power plants have now been cut. To compensate for this, all the German Federation’s revenues from emissions trading are to flow directly into the Energy and Climate Fund from 2012 on.

   Some of this money will benefit the CO2 Building Rehabilitation Programme. The German government is funding this programme with €1.5bn a year from 2012 to 2014 – more than one and a half times the total in the present year.

3. What can I do in practical terms to obtain funding for the renovation of a property?

   The KfW banking group is offering various programmes that support

   • the construction of energy-efficient new buildings,
   • the renovation of residential properties, and
   • the energy efficiency refurbishment of buildings that are part of Germany’s local authority and welfare infrastructure.

   Under the CO2 Building Rehabilitation Programme, KfW funds comprehensive renovation schemes that enable buildings to save energy all round and comply with the KfW Efficiency House standards. It also funds highly energy-efficient individual measures. In order to ensure the work done is of the highest possible quality and carried out to plan, KfW awards grants under its Energy-Efficient Refurbishment – Special Promotion programme to pay for the professional supervision of construction projects. These grants are worth as much as 50 percent of the costs incurred, up to a maximum of €2,000.

   The regular commercial and retail banks act as agents for these funding programmes.

4. What concrete quality criteria does the renovation of a building have to satisfy (to qualify for support)?

   The preconditions for support are based on the current Energy Saving Ordinance (EnEV 2009). EnEV 2009 raised the requirements placed on new buildings and larger renovation projects by an average of 30 percent. It is recommended that the advice of a qualified energy consultant be obtained before a building or flat is refurbished. They will help to identify the potential for energy saving in the property, and propose suitable renovation and modernisation measures. The Federal Office of Economics and Export Control (BAFA) awards grants for ‘local consultations’ from qualified engineers.

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Transport

1. What consequences will the Energy Concept have for our day-to-day mobility habits? For example, will less money be ploughed into the improvement of motorways in favour of the promotion of alternative, more environmentally benign types of mobility?

   Nothing will change as far as the state’s function of providing high-quality transport infrastructure is concerned. Electric cars need good roads as well.

2. Will the taxes on cars, flights, etc. be raised over the long term in order to make these means of transport more ‘unattractive’ and to increase the appeal of alternative, more energy-friendly ways of travelling?

   No. The German government does not intend to use taxes to interfere with the population’s mobility behaviour. Instead, it is relying on attractive incentives to help new means of transport gain acceptance. These include, for example, special parking spaces for electric cars or the right to drive electric vehicles in bus lanes.

3. So far, electric mobility has not made much of an impact in Germany. How will the infrastructure for electric cars be put in place throughout Germany within nine years?

   At the moment, there are about 1,500 electric cars on the roads in Germany. The Federal Ministry of Transport, Building and Urban Development is conducting pilot projects in eight cities and regions: Hamburg, the Rhine-Ruhr and Rhine-Main regions, Saxony, Stuttgart, Munich, Berlin/Potsdam and Bremen/Oldenburg. For instance, people in Berlin are able to rent and test drive cars with electric drives at the city’s main railway stations. Hybrid buses that have electric as well as diesel engines are operating in Stuttgart. More than 200 projects all over Germany will be supported to the tune of €130m under the second economic stimulus package.

   By 2020, at least one million electric cars should be driving on Germany’s roads, and it is hoped this figure will even reach six million by 2030.

   In future, electric vehicles will mostly be charged in non-public places, i.e. at home or the workplace. The German government is funding research into charging technologies. Apart from this, it is improving the legal framework so that the private sector has incentives to establish a well-functioning network of public charging stations.

4. To date, the German automotive manufacturers, especially, have flatly refused to push ahead the development of electric cars. Will it ultimately be foreign companies who profit from Germany’s electric mobility concept?

   The market and competition are the best drivers for innovation. The principle responsibility therefore lies with the private sector and individual businesses. The German automotive industry is finding itself increasingly exposed to the pressure of international competition. It is important to secure and consolidate our technological competence and competitiveness by offering attractive products. The German government is supporting this approach with its High-Tech Strategy. The Federal Ministry of Transport, Building and Urban Development is promoting electric mobility in all its various manifestations: from hybrid drives to batteries and fuel cells.

   The German government is convinced that, with all their technical know-how and economic efficiency, the German vehicle manufacturers will be capable of producing competitive electric cars. This will secure jobs and strengthen Germany as a place to do business.

5. Will measures be taken to improve access and links to public transport services, particularly in rural regions, so that citizens have incentives to leave their cars behind or even stop using them altogether?

   Public transport makes an important contribution to mobility, in urban areas just as much as in rural regions. However, it is primarily local authorities that are responsible for action in this field. It would be desirable for more services to be introduced, but this can only be done where they are economically justifiable.

   The German government is not telling German citizens whether they should use a car or not. The motor vehicle is one of the greatest inventions of the last 200 years, and people will continue to desire individual mobility. Not just in Germany, but all over the world. However, the vehicle of the future will differ – and will have to differ – from the vehicle of today. The trend towards lower-polluting vehicles will be maintained, and affordable alternatives to the present internal combustion engine will be introduced in the foreseeable future.

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