Recent developments in Germany have largely been centered on the transformation of electricity production, but to meet its stated targets, Germany needs to double down on efforts in the areas of transportation, heat and energy efficiency, as Boyan Dobrev points out. To achieve its environmental goals, Germany needs to address renewable energy market integration issues, to lay down a concrete phase-out plan for coal generators in light of the watered-down climate levy, and to ensure that the most efficient gas-fired power plants have a role to play in the electricity mix. Reliance on the market mechanism and the merit order for grid access, based on marginal costs of fuel plus carbon price, is less likely to force out coal power plants from the mix. It is unlikely that the marginal cost of coal, even with the reformed ETS, will exceed the price of gas in order to result in a displacement based on market principles alone. Germany needs to specify a clear place for its natural gas generators. The other areas of energy transformation – … Continue reading Focusing on the “energy” part in Energiewende