Germany ranks mid-table on market readiness for energy transition - analysis

Germany is lagging behind European countries such as Norway and the Netherlands when it comes to transitioning its energy market away from fossil fuels, according to an analysis by REA, a UK trade association representing the renewable energy sector. The country, which has been implementing its national Energiewende (energy transition) policies for over two decades, ranks mid-table, alongside Italy and Spain, in the 2023 Energy Transition Readiness Report, which looks at the favourability of framework conditions for the energy transition away from fossil fuels in 14 countries. The report rated the German public's high level of support for the shift to green energy positively but ranked the country poorly on other criteria, such as flexibility of the energy market and ability to exploit new business models. Only Greece, Switzerland and Poland came in worse than Germany. REA found just 1 percent of German households had smart meters compared to 99 percent in Denmark and 85 percent in France. Germany was also behind on heat pumps with just 38 devices per 1,000 houses, compared to 503 in Sweden.

The report also found that while Germany produced the most renewable energy, countries such as Norway or Sweden could cover more of their demand with green sources, partly because of their high use of hydropower. The authors said Germany would have to increase renewable output by 276 terawatt hours to reach its 2030 goal of 80 percent of renewables in gross power consumption. Germany is still off track on many of its 2030 climate targets.