German Clean Energy Transition Will Work, Study and Statistics Suggest

July 2022

One major question about Germany’s commitment to a carbon-neutral future is obvious: is it even possible? A study by insurance giant Allianz says the answer is “yes,” a conclusion supported by renewable energy figures for the first half of 2022.

The study, entitled “Back on the (climate) track” by Allianz Research, argues that “Russia’s invasion of Ukraine could push Germany’s green transition well past the finish line.” The authors define that as “push[ing] the renewable energy share of its electricity mix even beyond what would be needed to meet the Paris climate goals by 2035.”

The study cautions that achieving those targets will require an “essential paradigm shift in core areas of the electricity system,” but adds that the German government has “shown this might be possible.” The necessary expansion of renewable energy capacity alone mandates average investments of EUR 28 billion a year, but generates EUR 40 billion in additional annual added value. That would be more than 1.4 times the investment and 2.7 times the amount of money pumped in by the government, the study calculated.

That positive outlook on the private sector was supported by new figures coming out of the German Environment Agency. They recorded a 14 percent increase in the amount of renewably generated electricity in the first half of 2022, compared to the previous year. Green power covered almost half (49 percent) of Germany’s electricity needs.

One of the sectors that saw a rise in the use of clean electricity was transport. Germany’s Motor Transport Authority (KBA) recorded significant increases of in new fully electric and alternative drive cars. They accounted for 13.5 and 44.3 percent respectively of newly registered vehicles in the first six months of 2022. That helped compensation for increased number of Germans hitting the roads with the easing of coronavirus pandemic restrictions.

And the transition to renewables should only accelerate.

“Germany’s government coalition parties recently agreed measures meant to achieve a faster expansion of renewable power within the next years,” reports the independent website Clean Energy Wire. “The biggest reform in over 20 years should lay the groundwork for a climate neutral energy system and greater independence from energy imports.”

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