Germany is not making as much progress as other European countries in restructuring the electricity market and introducing green technologies (greentech). This is the conclusion 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 the study, Germany is able to maintain its rating from the previous year, but slips to last place, as other countries have improved more since the survey was conducted in 2021.
Germany only third on a scale of 1 to 5
The Energy Transition Readiness Index (ETRI) rates countries on their societal support for the energy transition, their ability to use new technologies and business models, and the flexibility of the market.
n a scale of one to five, Germany scores 3 – as do Ireland, Italy, Poland, Spain, Switzerland and the UK. Denmark, France, the Netherlands, Norway and Sweden score 4, with only Finland achieving the highest score of 5. All countries have ambitious emissions reduction targets, he said. But the higher-rated countries reportedly have flexible markets „that better ensure fair, transparent and easy access,“ it said. In lower-rated countries, on the other hand, there are barriers to investment, it said.
Implementation of political and regulatory changes slow
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 in order to achieve the goals of the energy transition.
Germany is the largest electricity market among the countries studied. Countries such as Norway or Switzerland therefore cover their demand better in percentage terms with renewable energies, although Germany produces the most electricity from renewable energies, the experts write. In 2021, renewable energies accounted for 41 percent of Germany’s electricity consumption.
By 2030, the German government wants the share of electricity generated from renewable energies in Germany to reach at least 80 percent.