Energy Security of Germany - Case Study Example

With the rapid pace of technological development, and the equally rapid rate the byproducts of technological advancements consumes energy and its derivatives, countries that have experienced massive technological growth are weary about the long-term security of their energy mix. Highly developed countries use all forms of energy that are readily available for them and enhance these energies to suit their purposes – whether operational or economical. Countries rich in one form of energy and lacking on other forms trade energy sources with other countries in order for them to optimize their country’s energy consumption. However, the rapid rate with which energy is used overtook the rate with which energy is created and the imbalance yields to an energy crises which in turn threatens the energy security of the country (Alhajji, 2007). Energy crises are brought about by various factors including political, economic, security, demand and supply, and transmission and generation. The interplay of these factors determines the ability of the energy source of the country to sustain the present and future energy demands of the country. In the event that the country experience an energy crisis, or energy shortages for that matter, progress and development is expected to decline as industries that rely heavily on that certain energy will have to slow down to a halt (Wines, 2007). No country would want this to happen and so deciding which energy mix can give the most efficient operations and productivity is crucial for a country. This is the reason why understanding how energy mix precludes energy security and how energy mix determines the long-term energy security of the country is very important. Energy Security and Energy Mix The different types of energy used and generated by a country determine the type of energy mix it has and the extent of energy security it will experience in the long run. A country’s energy mix is the relationship (in proportions) of all the types of energy sources used by the country. For example, a country that uses hydroelectric energy source to distribute electricity along power lines, oil and petroleum-based energies for transportation and industry, and solar energies for future developments is said to have an energy mix composed of solar, hydroelectric, and petroleum-based energy mix. The energy security of a country is then determined by the rate with which energy supply meets the demand of energy and the options available for alternative energy of the said country. Determining the extent of energy security a country has will help the country determine possible options in the future. In the same manner, knowing the extent and the limitations of the country’s energy supply will help the country decide the best and most efficient forms of energy generation, distribution, transmission, and consumption. By understanding the standing of the energy security of the country, governments can prepare for the possible alternatives to energy sources as well as prompt the research for other convertible and renewable energy source that would ensure the future energy demand of the country. To simplify and specify the discussion, this paper will look into the energy mix of Germany with reference to how it generates, distributes, transmits, and consumes electrical energy, the issues associated with the production of electricity, and the future of the German electric production. Energy mix of Germany A country’s geophysical location acts as a limit to its energy mix. Germany is one of those countries that are rich in one energy source and lacking on other energy sources. Germany depends highly on imported energy sources even though the country has the capability to produce enough energy for the years to come. In 1997, the country has imported a total of 233,959, 000 metric tons of oil equivalent while producing a total of 134,137,000 metric tons of oil equivalent in 2000, a decline of energy production by 28% from 1997 (Earthtrends, 2003). Germany has a diverse energy mix with oil holding the largest share close to the EU-27 value of 38% (EC, 2007). Consumption of solid fuels which was the primary energy source of Germany in the last century is being replaced by natural gases. In the same manner, the nuclear energy supply of the country is increasing at a steady pace over the years as well as the use of renewable resources. Germany’s energy production is mainly on coal with 58.3 metric tons in oil equivalent in 2004 (EC, 2007). The country still has 6.739 million tones of coal reserved as of 2005. Germany is also the second largest producer of nuclear energy among countries belonging to the European Union with production of nuclear energy at 43.1 metric tons in oil equivalent. The domestic production of oil, gas, and renewable resources makes up for the remaining energy mix of the country. Despite the production capability, Germany imports 61.3% of its energy consumption (EC, 2007) where 56% of this figure goes to the importation of crude oil from Norway and Russia. On top of that, Germany depends on Poland, South Africa, and Russia for hard coal (EC, 2007). Energy consumption of the country is distributed to industry, transport, agriculture, commerce, and residential consumptions. The demand for electricity in Germany has increased steadily over the years. Prior 1990, Germany depends highly on hydroelectric power plants for the generation of electricity (Quaschning, 2009). With the increasing demands for electricity consumption, Germany has altered its main source of electric energy to wind power even though more hydroelectric power plants have been installed. In 2007, a total of 19,460 wind turbines have been installed with a total capacity of 22,247 MegaWatthour in Germany (Albers, n.d). In 2008, 40,300 GigaWatthour of electricity was generated using wind power which is significantly higher compared to the electricity generated using hydro power (at 21, 800 GWh) (Quaschning, 2009). In order to support this endeavor, the German government has instituted the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz) in 2000 which gave high priority to electricity production through renewable resources like biomass, wind power, landfill, pit, and sewage gas, hydro power, and solar power. The efforts exerted by Germany to use renewable energies in the production of electricity have become more pronounced. This is due to the alarming rate with which the country consumes energies from fossil fuels, which takes eons to regenerate. The country has expressed willingness to research alternative methods to power its industries and other sectors that need to electricity in order to (a) reduce their consumption of oil, natural gas, and coal, (b) to cut their dependence on energy imports, and (c) to significantly decrease their emission of greenhouse gases that harms the environment (AA, 2008). Germany, through its leadership in the European Union, has proposed the policy to cut greenhouse emission by 20% of the 1990 emission level (Umbach, 2008). Important Factors for Energy Security in Germany The objective of the German government to free its country from depending on oil and nuclear energy sources is impressive considering the amount of money, time, and effort it has poured to meet its commitments. The positive things about Germany’s desire to move towards using renewable resources can be summarized as follows: (a) Environmental protection – global warming is increasing at a very fast rate as people from all around the globe consume energy sources whose byproducts harm the environment. The target for environmental protection works two ways – by lowering the demand and consumption of oil, coal, and natural gases and at the same time lowering the emission of harmful gases in the environment. By initiating the move to use renewable energy resources, Germany can help the Earth recover from massive destruction by slowing down the rate with which fossil fuels and oil products are consumed. (b) Lowering of German importation of energy sources. Producing its own energy using renewable resources, Germany is expecting to see significant decline on the volume of its energy imports. This simply means that Germany will become independent of energy-exporting countries which could also mean sustainability of development. Germany is the proponent of the “20 percent objectives” of the European Council and is focused in meeting its environmental obligation. However, there are certain socio-economic concerns that the German government has to deftly balance meeting the policy it has created and at the same time meeting the complex demand for energy which previous energy sources were able to meet. Below are some of the issues Germany has to consider in order to successfully implement a total conversion of energy source. (a) Climate Protection vs. Economic Competitiveness – electric power generation through renewable resources like wind power needs more investment from the German people through its government in order to enjoy a long-term energy security that can not be attained in the next five to nine years. This means to say that the cost of transition may overtake the projected financial potential of the whole project, losing money in the short-term amidst global economic recession. Analysts are worried about the amount of investment required for the transition that would only deliver up to 25% (Albers, n.d) of the German demand for electricity when fully operational. Studies show that Germany will be paying around €1.9 - €5.7 billion per annum until 2020 (Umbach, 2008) (b) Climate Protection vs. Security Supply of Gas – phasing out the energy consumption that depends highly on nuclear energy, oil, coal, and natural gas may yield unwanted results. Germany may find it difficult to work with wind energy in the long run considering that it only delivers up to 25% of the German demand for electricity because the remaining 75% of the consumers depending on electricity may not be supplied by electricity generated from wind power alone. In other words, 75% of the present electric energy consumers of Germany – industry, transportation, agriculture, and commerce would still look for the non-existing other means of electric power supply. Besides, lowering the demand for coal and oil from export is too optimistic because this would mean a major partial (if not total) overhaul must be done on the present technology in order to achieve this goal. (c) Phasing out Nuclear Power is impossible – it can easily be argued that Germany’s positive outlook towards the reduction of energy consumption and a transition to renewable resources is too optimistic. The trend in the energy development of Germany shows increasing dependence and investment on nuclear power. Phasing them out in such an early stage of development will cost Germany the investments it has made on nuclear power plants. On top of that, comparative analysis on the present German demand for electricity supplied by nuclear power versus that of renewable resources indicates that there is still a long way to go before Germany will become highly dependent on renewable resources. Suggested Energy Mix Germany should have been fine if not for the policy it has instituted to battle greenhouse emission while it is still leading the European Council. That means to say that the most potent energy mix for the country is the combined dependence on coal, natural gas, oil, nuclear energy, and other renewable resources. With the proposition, Germany aims to recompose its energy mix into renewable resources alone. While this objective is not impossible, it is way too realistic for a country as advance as Germany since majority of the technology it uses depends highly on the energy supplies coming from the present energy mix employed by the country. Working around the need in the next five to nine years would give Germany lots of difficulties in achieving the goal. Taking this into consideration, it is highly beneficial for Germany to stick to its current energy mix while working on increasing the capacity of its renewable resources before the country performs a total overhaul. This move ensures that the country still operates at optimum efficiency at the same time makes sure that its energy-related policies takes care of its future. Conclusion Germany is a great and powerful country not only because of its strong economy but also because it has desired to protect the environment. While this is a noble thing to do, Germany may find serious difficulties in achieving its goals with its current capabilities and dependence on sources of energies that go against its environmental policies. In order to achieve successful results, Germany must work on what it has first and establish its nuclear energy (which it has invested much on the recent years) and at the same time prepare for the one-time energy transition in order for it to achieve its goals without compensating its economic stability. References Albers, Herman. Wind Energy in Germany. German Wind Energy Association (BWE). Accessed on March 18, 2009 from http://www.wind-energie.de/en/wind-energy-in-germany/ Alhajji, A. F. What is Energy Security? Definitions and Concepts: Part 3. Middle East Economic Survey. November 5, 2007.Accessed on March 18, 2009 from http://www.mees.com/postedarticles/oped/v50n45-5OD01.htm Auswärtiges Amt. Cooperation on Energy Security and Climate Protection. September 4, 2008. Accessed on March 18, 2009 from http://www.auswaertiges-amt.de/diplo/en/Aussenpolitik/Themen/EnergieKlima/Uebersicht.html Earthtrends Country Profile. Energy and Resources – Germany. Accessed from http://earthtrends.wri.org/pdf_library/country_profiles/ene_cou_276.pdf European Commission. Germany – Energy Fact Sheet. January 2007. Accessed on March 18, 2009 from http://ec.europa.eu/energy/energy_policy/doc/factsheets/mix/mix_de_en.pdf Quaschning, Volker. Renewable Electricity Generation in Germany. Renewable Energies and Climate Protection. Accessed on March 18, 2009 from http://www.volker-quaschning.de/datserv/ren-Strom-D/index_e.html Umbach, Frank. German Vulnerabilities of its Energy Security. AICGS Advisor. August 22, 2008. Accessed on March 18, 2009 from http://www.aicgs.org/documents/advisor/umbach.vuln0808.pdf Wines, Michael. Energy Shortages Hampers Development in Africa. International Herald Tribune. Africa and Middle East. July 29, 2007. Accessed on March 18, 2009 from http://www.iht.com/articles/2007/07/29/news/africa.php Read More

For example, a country that uses hydroelectric energy source to distribute electricity along power lines, oil and petroleum-based energies for transportation and industry, and solar energies for future developments is said to have an energy mix composed of solar, hydroelectric, and petroleum-based energy mix. The energy security of a country is then determined by the rate with which energy supply meets the demand of energy and the options available for alternative energy of the said country. Determining the extent of energy security a country has will help the country determine possible options in the future.

In the same manner, knowing the extent and the limitations of the country’s energy supply will help the country decide the best and most efficient forms of energy generation, distribution, transmission, and consumption. By understanding the standing of the energy security of the country, governments can prepare for the possible alternatives to energy sources as well as prompt the research for other convertible and renewable energy source that would ensure the future energy demand of the country.

To simplify and specify the discussion, this paper will look into the energy mix of Germany with reference to how it generates, distributes, transmits, and consumes electrical energy, the issues associated with the production of electricity, and the future of the German electric production. Energy mix of Germany A country’s geophysical location acts as a limit to its energy mix. Germany is one of those countries that are rich in one energy source and lacking on other energy sources. Germany depends highly on imported energy sources even though the country has the capability to produce enough energy for the years to come.

In 1997, the country has imported a total of 233,959, 000 metric tons of oil equivalent while producing a total of 134,137,000 metric tons of oil equivalent in 2000, a decline of energy production by 28% from 1997 (Earthtrends, 2003). Germany has a diverse energy mix with oil holding the largest share close to the EU-27 value of 38% (EC, 2007). Consumption of solid fuels which was the primary energy source of Germany in the last century is being replaced by natural gases. In the same manner, the nuclear energy supply of the country is increasing at a steady pace over the years as well as the use of renewable resources.

Germany’s energy production is mainly on coal with 58.3 metric tons in oil equivalent in 2004 (EC, 2007). The country still has 6.739 million tones of coal reserved as of 2005. Germany is also the second largest producer of nuclear energy among countries belonging to the European Union with production of nuclear energy at 43.1 metric tons in oil equivalent. The domestic production of oil, gas, and renewable resources makes up for the remaining energy mix of the country. Despite the production capability, Germany imports 61.

3% of its energy consumption (EC, 2007) where 56% of this figure goes to the importation of crude oil from Norway and Russia. On top of that, Germany depends on Poland, South Africa, and Russia for hard coal (EC, 2007). Energy consumption of the country is distributed to industry, transport, agriculture, commerce, and residential consumptions. The demand for electricity in Germany has increased steadily over the years. Prior 1990, Germany depends highly on hydroelectric power plants for the generation of electricity (Quaschning, 2009).

With the increasing demands for electricity consumption, Germany has altered its main source of electric energy to wind power even though more hydroelectric power plants have been installed. In 2007, a total of 19,460 wind turbines have been installed with a total capacity of 22,247 MegaWatthour in Germany (Albers, n.d). In 2008, 40,300 GigaWatthour of electricity was generated using wind power which is significantly higher compared to the electricity generated using hydro power (at 21, 800 GWh) (Quaschning, 2009).

In order to support this endeavor, the German government has instituted the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz) in 2000 which gave high priority to electricity production through renewable resources like biomass, wind power, landfill, pit, and sewage gas, hydro power, and solar power.

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