What future for the German energy transition policy?
This article was published in The Beam #4 — Subscribe now for more on the topic.
We have interviewed one of the main actors of the Energiewende: Patrick Graichen, the Director of Agora Energiewende, a think tank and policy laboratory that develops scientifically based and politically feasible approaches for ensuring the success of the German energy transition.
“I am a child of the ’80s — the decade when the nuclear disaster at Chernobyl happened and it became clear that climate change was a real threat to the planet.”
Patrick Graichen has an impressive commitment to the energy transition. From 2001 to 2012, he worked at the Federal Ministry for Environment: first in the area of international climate policy; then from 2004 to 2006 as Personal Assistant to the Secretary of State in the ministry; and from 2007 as Head of the Unit for Energy and Climate Change Policy. His extensive work heading economic negotiations and legislative procedures for EU and international treaties such as the Kyoto Protocol, plus his Ph.D. on municipal energy policy from the Interdisciplinary Institute for Environmental Economics, University of Heidelberg, just add why we wanted to have this insightful conversation with Patrick Graichen.
You’ve headed negotiating the design of the economic instruments of the Kyoto Protocol, the Integrated Energy and Climate Programme of the Federal Government (2007), and the EU’s Climate and Energy Package (2008). Where does your commitment to the energy transition come from?
I could add my Ph.D. thesis on local energy cooperatives and my youth at Friends of the Earth to your list. But most of all I am a child of the ’80s — the decade when the nuclear disaster at Chernobyl happened and it became clear that climate change was a real threat to the planet. I became aware that it is up to my generation to prevent mankind from those mega risks. And if you really want to matter and make a difference, you have to choose a career related to politics and government. In this sense, the chance to lead Agora Energiewende is a great opportunity. We do not belong to any lobby group or political party, and at the same time we are very partisan regarding our topic, making the energy transition a success. This very special constellation allows us to develop pathways which will last for longer than just one legislative period and are not bound to a particular government. And this is exactly what a generation-spanning project like the Energiewende needs.
Agora Energiewende is a think-tank and policy laboratory that develops scientifically based and politically feasible approaches for ensuring the success of the German energy transition. How did this adventure begin?
Back in 2011, a couple of months after the Fukushima nuclear disaster, there was a recommendation by a government installed commission headed by Klaus Töpfer, the former UN-undersecretary. This commission was dedicated to finding a consensus on the final phase-out of the German nuclear power plants. As part of their final report, the commission recommended to establish a multi-stakeholder-platform in order to discuss all the tasks related to this unprecedented project, the Energiewende. But to everybody´s surprise, the government did not establish such a platform nor did they establish anything else to inject life in the vision of the Energiewende. This was when Stiftung Mercator and European Climate Foundation decided they could fill the gap — and Agora Energiewende was born.
In recent years, we’ve seen numerous positive trends in Germany’s policy towards the transition to green energy. Is the speed of change fast enough to meet the climate and efficiency targets set for 2020?
As part of the decision of the government on the Energiewende in 2010/2011, a set of targets was agreed on: nuclear phase out, renewables built up, efficiency and greenhouse gas emissions. Today we see that in terms of renewables and nuclear, everything is working as planned, but we are lacking on efficiency and overall greenhouse gas emissions. The reason is that we have good laws on nuclear and renewables but little regulation on efficiency and coal. It’s the job of the next government to act on this and come up with stark efficiency and climate regulations. Otherwise we will fail our 2020 targets.
“The most important is to change the mindset of the policy makers.”
Energy policy remains the topic of intense debate worldwide. What are the remaining challenges that Germany needs to overcome for its energy transition to succeed?
We need a consensus on how to deal with coal and oil. From a climate perspective it is more than clear that we have to cut in half our coal and oil use by 2030 and to stop burning coal altogether by 2035. But that means also to transform those industries that depend on coal and oil and to organise a just transition for those working in these sectors. A good consensus needs to address those questions. Those are the obstacles, they are not on the question whether a power system based on renewables is reliable or even technical feasible — we already know, it is.
How do you explain that the civil society in Germany reacts so well to the energy transition?
I guess the environmental movement of the ’80s is still sounding in many people’s minds — and whenever there is a nuclear accident or a major climate related weather event anywhere in the world, this reinforces the reasoning for the Energiewende. Plus, do not forget that major parts of the energy transition are a success story for Germany. We created jobs in the renewable industry and about 1.5 million people are engaging in the energy transition directly, either by having a solar panel on their rooftop or by owning assets. This is actually a learning tool also for other nations — engage your people when transforming your energy system. And given the fact that wind and solar are really cheap today, this can now take place everywhere.
“Over the last 20 years, the liberalisation of the European energy market was the most important key for the success of renewable energies.”
According to Agora Energiewende’s research, what are the first measures to implement today to improve our global energy efficiency?
The most important is to change the mindset of the policy makers. Try to implement an “efficiency first” strategy in literally every law related to infrastructure. Always think: “Could it be cheaper to invest in the non-usage of power than in new infrastructure to provide additional power?” This will be the case in probably in nine of 10 times when you have to make such a decision. Unfortunately, this is a very un-sexy approach for politicians — think of all the red ribbons remaining uncut. But in terms of getting the best return-on-invest from your country’s infrastructure and to secure funds for other important public purposes like education or healthcare “efficiency first” is a winning strategy.
While the German approach is not unique worldwide, the speed and scope of the Energiewende have been exceptional here. How do you explain this?
We had something like the perfect storm. Just let me name the most important factors. First, the renewable energy act provided secure payments to re-finance investments in renewable energies. We also had very simple and reliable administrative processes for project planners. As well, renewables get priority access to the grid — that has been very important in times of the old power monopolies, before we had the liberalisation of the power sector. And last but not least we have people who are eager to invest in renewables and are convinced that this challenge is worth much effort still.
What are the main opportunities that the energy transition brings to the country?
Germany might have the chance to earn a return-on-invest also by selling energy transition technology and knowledge. As an export nation, Germany has vast business networks all over the world. And all over the world renewables are booming. We are thinking about establishing the brand “Energy transition made in Germany” when offering Energiewende products.
If we look at the European Union, what have been the most important legislative initiatives in favour of the energy transition?
Over the last 20 years, the liberalisation of the European energy market was the most important key for the success of renewable energies. It has split up the old energy monopolies into regulated grid operators which do not prefer one power plant over the other, and competitive power plant operators. This provided room for new developments. Today we are again discussing on the future of the internal energy market within the European Union. This includes common rules and instruments on how to manage the energy system, on how to organize balancing markets, how to integrate more renewables, and so on. A lot of those ideas are part of the current clean energy package of the EU commission.
What are some of the current research projects you’re conducting with Agora Energiewende?
We are working on a lot of topics, almost every week we add new research to our homepage.
Currently, the most important research is a project that is sketching the “big picture” of the German energy system in 2030: how it will look to operate a power system with 60% renewables, how to integrate e-mobility, how markets will work and what needs to be done to get there. That´s the one project where literally all our research of recent years is cumulating. That makes it very substantiated on the one hand — and on the other hand it aims to be brief, concise and due to many graphical elements easy to understand. I very much hope you will enjoy the read! [agora-energiewende.org]
Interview by Anne-Sophie Garrigou
