© BMWi; Data from Federal Statistical Office; Arbeitsgemeinschaft Energiebilanzen

Lower energy consumption that can boost GDP

Few countries can rival Germany when it comes to energy efficiency. 2014 was no exception here, with Germany posting GDP growth whilst reducing its energy consumption per euro in economic output.

Germany’s GDP grew by 1.6 per cent in 2014. What is really extraordinary about this is the fact that the country managed to reduce its energy demand over the same period – by close to 7 cents for every euro of economic output.

Let us take a closer look at the figures. The ‘Arbeitsgemeinschaft Energiebilanzen’ (AGEB) says that German industry needed 4.8 gigajoules (some 1,333 kWh) of primary energy to produce goods worth 1,000 euros last year. The 2013 figure had been 5.2 gigajoules (approx. 1,444 kWh). In part, this drop was down to mild weather that reduced the need for heating during the winter months. The AGEB expects Germany’s energy consumption to go up slightly this year, for reasons related to the weather.

On average, final energy productivity in Germany increased by 1.6 per cent each year between 2008 and 2014. But this is still below the government’s 2.1 per cent target.

Germany is improving its energy performance

Yes, there are some seasonal fluctuations, but the German economy is keeping up its tradition of becoming ever more energy efficient. This is a tradition that goes back to German reunification in 1990: back then, Germany’s energy demand per 1,000 euros worth of economic output was 7.6 gigajoules. Over the 24 years that have followed, Germany has boosted its energy performance by about a third. This is good news for the economy and for energy security. The International Energy Agency (IEA) has calculated that the energy-efficiency measures introduced since Germany’s reunification have eliminated the need for energy imports that would have cost the country $30 billion in 2014 alone.

Energy efficiency can boost economic output

Energy efficiency is a competitive economic advantage. Across the globe, an increasing number of governments and companies are realising that energy-efficient technologies can cut costs, boost competitiveness, and reduce dependency on fossil fuels. At the same time, they also help mitigate climate change. All this means that there is growing demand for innovative, highly efficient technologies – including ones that are ‘Made in Germany’. This opens up excellent business opportunities for German companies. The Federal Ministry for Economic Affairs and Energy supports these companies as they seek to tap this potential and has launched a dedicated Energy Efficiency Export Initiative.