Socio-economic and Environmental Impact of German Energy Transition: A Policy Review at Halfway

Abstract

Throughout the history, Energy transformations have had great impact on economies and societies in general. Today’s global developments towards a decarbonized economy is also transforming energy systems and socio-economic organizations of countries in many ways. Germany, with its Energiewende, presents itself or sometimes perceived as a model in this regard. The progress of Germany is much commended due to fast development of renewables in a relatively short time span. However as with all radical far-reaching socio-economic changes, it has not been spared from heavy criticism, especially regarding cost to society and unanticipated technological consequences regarding grid problems. In the areas of affordability, sustainability, supply security therefore, the scorecard is mixed. Among the achievements of the Energiewende one surprising issue has not received much attention: the increased community ownership and decentralization of power generation and its potential impact on the socio-economic organization of society towards more democratization and effective community involvement at all levels of energy and economic policy-making. This paper thus, along with other aspects of Energiewende tries to focus on this issue. The German energy transition far from reaching its overall ultimate targets and the challenges lying ahead are huge and needs much careful policy adjustments for the coming decades.