New Vectors of German Energy Policy

Abstract

The article is devoted to energy policy of Germany. In the coalition treaty, the new German “red-green-yellow” coalition confirmed the commitment to achieve climate neutrality by 2045. In line with this goal Germany has developed a strategy to move away from coal as a primary source of energy. And, in the meantime, Berlin will close the last three Nuclear Power Plants by the end of the year 2022. The Russian special military operation in Ukraine has influenced the German energy policy significantly. Since February 2022, the German government has put a premium on substitution of Russian energy. The aim of this article is to analyze the coherence of the two policies: energy transition and rejection of Russian energy resources. The author explores phasing out nuclear power and coal, import of oil and gas, development of hydrogen production and renewables in Germany. The analysis revealed that two tracks do not complement each other. Both tracks should trace to the same goal – carbon-free energy, – but they have different temporal frameworks. While political elites claim to phase out Russian fuels within two years, the energy transition should take around 30 years. The natural gas was supposed to be the transitional energy, but more than half of it comes from Russia. Substitution of Russian coal and Russian oil requires more investment, and it could reduce the ability to subsidize renewables. Potential cooperation between Germany and Russia in hydrogen production was frozen. Only the policy aimed at improving energy efficiency and developing new building standards is likely to fit both tracks.