| Title | 3. The Role of Public Support for the Energy Transition in Germany |
|---|---|
| Subtitle | Past and Future Tasks |
| Contributor | Tom Bauermann(author) |
| DOI | https://doi.org/10.11647/obp.0499.03 |
| Landing page | https://www.openbookpublishers.com/books/10.11647/obp.0499/chapters/10.11647/obp.0499.03 |
| License | https://creativecommons.org/licenses/by-nc/4.0/ |
| Copyright | Tom Bauermann |
| Publisher | Open Book Publishers |
| Published on | 2025-12-08 |
| Long abstract | This chapter examines the progress of the energy transition in Germany, with a focus on the electricity sector. Attention is paid here to the significant expansion of renewable energies. Political support under the Renewable Energy Act, particularly the operating cost subsidies, has played a decisive role in shaping this development. This chapter highlights both the advantages and disadvantages of this financing model. It also describes the future tasks associated with the expansion of renewable energies. A central issue of the upcoming energy transition in Germany, which is linked to the further development of renewables, is the urgent need for expansion investments in the electricity grid. There is a notable risk of (further) privatization of the electricity grid, which could lead to higher costs for consumers. This jeopardizes the socioecological transition. As will be shown, a publicly financed infrastructure model and greater government involvement in the expansion of clean energy would be significantly more cost-efficient and offer additional advantages. |
| Page range | pp. 45–58 |
| Print length | 14 pages |
| Language | English (Original) |
Tom Bauermann is Head of the Unit “Macroeconomics of the Social-Ecological
Transition” at the Macroeconomic Policy Institute (IMK), which is part of the Hans
Böckler Foundation. He holds a PhD in economics from the Ruhr University Bochum,
with research stays at the New School for Social Research (New York) and the Université
Sorbonne-Paris-Nord. From 2020 to 2022, he worked as a policy advisor for the state of
Bremen in the areas of economics and employment, digitalization, (sea) ports, energy,
and climate protection. He also contributed to the work of the Enquete Commission
“Climate Protection Strategy for the State of Bremen”. At IMK, his work focuses on
climate change, energy economics, infrastructure investments, industrial policy, and
measures to promote a just transition. His recent projects have addressed the potential
costs of Germany’s future power grid, support measures for the heat transition, and
the impact of the Inflation Reduction Act (IRA) on the American energy supply, the
clean-tech industry, and its implications for Europe.