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Entering a new era

"The energy transition is part of the modernisation of our economy, and our energy system is entering a completely new era." Federal Minister Sigmar Gabriel on the role of the energy transition for the economic world of tomorrow.

At more than 43 million employed people, we have set a new all-time record, and economic growth in Germany will continue to be above-average this year in the European comparison. But we cannot afford to rest on these laurels. What must be done to ensure that the German economy remains strong?

A new energy system - a modern economy

The transformation of our energy system plays a vital role in this context. A secure and affordable energy supply is a precondition for a highly developed industrial country like Germany. "Politicians and electricity providers must establish a completely new system", Federal Minister Sigmar Gabriel underlined during his speech at the Handelsblatt’s "Energy Industry 2016" conference in Berlin on 19 January 2016. At the same time, the energy transition is a driver of innovation, jobs and progress.

Linking up elements of the energy transition

In his speech, Federal Minister Gabriel summarised the challenges that our energy system must tackle in the coming years: "First, the renewables must be integrated in the electricity market, and costs must be reduced gradually. Second, the electricity market must be made fit for growing shares of renewable energies. And third, we need an adequate infrastructure. This requires a rapid expansion of our electricity grids and the digitisation of our electricity supply. Above all, these three elements must be linked up to guarantee that the whole system works and to ensure security of supply. The key challenge of a successful energy transition is optimum system integration."

On track

The key reforms in the context of Germany's energy transition are making good progress: pursuant to the revised Renewable Energy Sources Act (EEG), funding for green electricity will be determined by auction. In addition, we have set out the regulatory framework for the German electricity market of the future, the electricity market 2.0, in the draft Electricity Market Act. Furthermore, the Act on the Digitisation of the Energy Transition is intended to pave the way for smart metering and smart grids before this summer. And a major step towards the energy infrastructure of the future was taken when a statutory priority to place high-voltage direct current (HVDC) lines underground was adopted at the end of 2015.

To listen to the full speech (in German), please click here.