Energy Transition - Flipping the switch
13th MIBAS debates on CSR event: Energy Transition – Flipping the Switch
As one of the largest economies in the world, Germany has taken drastic steps to reduce its dependence on non-renewable power sources with the introduction of the Energiewende. The Energiewende, or “Energy Transition,” outlines several ambitious goals set by the German government, including a 40% reduction of Germany’s greenhouse gas emissions and the nuclear phase out that aims to eliminate nuclear energy in Germany by 2022. In the 13th MIBAS Debates event, students and experts were able to critically reflect on the challenges and opportunities of the Energiewende.
Three experts on energy were invited to partake in the debate to represent the different business standpoints affected by the Energiewende. One guest was Stephan Jeznita, the managing director of WEB Windenergie Betriebsgesellschaft Deutschland GmbH, subsidiary of an international developer and operator of wind energy and photovoltaic projects. Mr. Jeznita represented the renewable energy sector, arguing that renewable energy is the future and deserves the currently privileged position in the market. Mara Marthe Kleiner is an advisor for AGORA Energiewende, a joint initiative of the Stiftung Mercator and the European Climate Foundation. She works closely with representatives from both the political and private sector to help both parties meet the targets of the Energiewende. Ms. Kleiner proposed a holistic view on the topic with concrete examples of the outlook. The final speaker was Dr. Burkhard Pahnke, senior manager investor relations at RWE, one of the leading power suppliers in Europe. Because the company’s power generation business is to a large extend based on coal and nuclear power, it has been significantly affected by the Energiewende.
When discussing whether Germany’s approach to decarbonizing the energy sector has been successful or not, there were mixed responses. Dr. Pahnke mentions that – in theory – the European Emission Trading System is the most efficient instrument to reduce emissions while the effectiveness of national solo attempts is limited. He argues that the big challenges of the German Energiewende are not only related to emission reductions but also to cost effectiveness and security of supply. However, Mr. Jeznita argues for prioritizing renewables and is optimistic that the goals of the Energiewende can be met. He sees the technological progress and cost degression of wind energy over the last twenty years as an indicator that even more improvements can be achieved, especially when it comes to energy storage.
Ms. Kleiner was also optimistic about the future, but cautioned that the steps towards a fully renewable future will become increasingly difficult as smart grids need to evolve, which requires investment and societal commitment. She made clear that the most efficient energy is the energy that is not consumed, and believes that everyone needs to rethink the “efficiency first” guiding principle. The audience questions focused on the strategic change of RWE, the European Emission Trading Scheme as well as the overall future of the energy market, with an emphasis on grid development and smart storage.
The debate left us with the outlook that the energy transition is wanted, but not yet completed in Germany. There are many opportunities for Germany to become a pioneer in renewable technology, but this requires support from both consumers, businesses, and government to ensure that these visions become reality.