Germany is striving to achieve energy independence in the long term

By Moritz Romerskirchen

Although Germany’s gas storage level reached 100% last week, Europe’s largest economy is still struggling to achieve long-term energy independence after decades of heavy dependence on imports.

Germany’s Minister for Economic Affairs and Climate Action Robert Habeck called this a “mistake” by previous administrations, and now the country faces the immediate challenge of providing enough fuel to avoid blackouts during the winter.

However, in the long term, Germany will have to conclude several new energy partnerships and achieve energy independence by investing in renewable energy.

Energy crisis hit

As a major net energy importer, with 70% of fossil fuel and uranium imports coming from, Germany has been particularly hard hit by Europe’s energy crisis. As of early 2022, Russia still supplies more than half of Germany’s coal and natural gas supplies, along with 34% of its oil supplies.

After Russian gas supplies to Europe via the main Nord Stream 1 pipeline had already been cut off in early September, Nord Stream 1 and 2 pipelines were damaged and shut down by a series of explosions that caused an underwater gas leak at the end of September 2022.

Due to “growing uncertainty amid the current situation”, Germany’s largest energy supplier, E.ON, has reduced the value of its stake in Nord Stream 1. The company’s 15.5% stake has been reduced to only €100 million (US$103 million), compared to 0.5 billion euros at the end of June.

After announcing a “tier 2: alert level” gas contingency plan, the Bundesnetzagentur (BNetzA), the German regulator responsible for electricity and gas, has been preoccupied with protecting gas supplies before winter and stores are now full.

As part of energy saving measures, minimum temperatures have been lowered, monuments are no longer lit and a million private pools and hot tubs across the country will have to remain unheated during the winter. BNetzA emphasized the need to reduce consumption by at least 20%.

A picture shows a pile of firewood next to a house in Berlin, the capital of Germany, on November 1, 2022. In response to rising energy prices, some Berliners have begun stockpiling firewood for the coming winter. (Xinhua / Ren Pengfei)

We say the imperative of politics

Before this energy hubris showed up, Germany had a stated goal of phasing out coal-fired power plants by 2030 and dismantling all nuclear power plants by the end of 2022. Nuclear power plants and coal-fired power plants to protect their energy supply and Instant shortage solution.

After infighting within the ruling coalition, Chancellor Olaf Scholz intervened and allowed all three German nuclear power plants to continue generating electricity over the winter until April 15, 2023.

While there have been short-term successes with gas storage, Germany is looking elsewhere to boost gas supplies to end its dependence on energy. To diversify imports, Habeck quickly entered into gas supply discussions with Norway, Canada and the United States.

Germany has also indicated its interest in discussing a natural gas agreement with the UK with the aim of including a mutual bailout clause in case of shortages during the cold snap. BNetzA chief Klaus Müller recently told The Guardian that the UK’s long coastline is a “geographical advantage when it comes to LNG import infrastructure”.

Wind turbines in Brandenburg, Germany, September 15, 2022. (Xinhua / Ren Pingfei)

Independence through renewable energy

Extending the life of coal-fired and nuclear power plants can be seen as a setback for Germany’s environmental plans. However, Habeck now sees the rapid expansion of renewable energy capacity as a vital tool for achieving energy independence as well as climate protection.

As the share of renewable energy increases, Germany will reduce its need for energy imports. The government aims to cover all the country’s electricity needs with renewable sources by 2035, five years ahead of the original target. By 2030, the share of wind and solar power is expected to double from current levels to 80%.

Although gas storage facilities are now full and Germany enjoys secure supply agreements across the European Union (EU), the severe cold snap will test the public’s resolve to reduce energy consumption. Blackouts can be avoided, but the supply situation is still “extremely tense,” says Amperion, the operator of the German power transmission grid.

With parts of the Nord Stream gas pipelines destroyed, it is clear that the country will not have the option to return to the old energy structure. Until renewables are ready, diversification of energy supplies will become an increasingly urgent issue. (1 EUR = 1.03 USD)

* Originally published in Xinhua.