Energy agenda of German coalition Government

The new coalition government recognises that Germany needs a comprehensive energy strategy, based on a mix of energy sources. It recognises the challenge of climate change and the possible conflict over energy prices and distribution of energy and raw materials. It sees the solution in a joint strategy of improving energy/resource efficiency whilst expanding renewable energy/renewable raw material use.

Nuclear

The coalition partners hold different views on the use of nuclear energy but the existing 2000 law to phase out by 2021 stands. The issue of nuclear waste disposal will be addressed quickly, during this parliamentary term.

Renewables

Germany's existing renewable energy targets will be kept, increasing the percentage of renewable electricity to 12.5% by 2010 and 20% by 2020. This will increase the contribution of renewables to total energy to 4.2% by 2010 and 10% by 2020.

In the longer term, the coalition will concentrate on offshore wind and repowering onshore wind, rather than new-build onshore. The coalition will push for the foundation of an international renewable energy agency IRENA.

Biofuels and renewable raw materials

The previous target to increase the percentage of biofuels in transport to 5.75% by 2010 has been kept, in line with EU requirements. The existing tax exemption for biofuels will be replaced by an obligation to blend biofuels with conventional fuel. The coalition will work with industry to increase biofuel R&D and to bring biomass-to-liquid technology to market.

Energy efficiency

Germany's target of doubling energy productivity by 2020 against 1990 levels will remain. There is a new target of renovating 5% of buildings built before 1978 per year. Government funding for energy-related building renovation will be increased to €1.5bn/year (more than three times the existing level) and the scheme changed from low-interest loans to grants. An energy labelling scheme for buildings will be introduced. CHP, modernisation of the power station stock, EU initiatives to increase energy efficiency and the German Energy Agency's energy saving schemes will all be supported.

Innovation: 'Energy for Germany'

Through an innovation initiative the coalition hopes to retain its world leadership in energy technology. This will require an increase in energy research funding from both the Government and industry.

The coalition is aiming for increased competition on the energy and gas markets. It will support the instruments in the new Energy Law and the responsible authorities and increased inter-European competition. Transit capacity will be increased and LNG infrastructure expanded

Economic Instruments

Germany's eco-tax on energy and road fuels will remain, but not be increased. The existing exemptions for industry will continue.

EU

The coalition supports the development of an EU strategy on sustainable and affordable energy and raw materials and the harmonisation of EU energy taxes. To protect the competitiveness of its manufacturing industry, Germany will exploit measures to relieve the burden on industry when implementing the EU energy tax directive.

The 150-page text is available in German here.