Germany energy policy - from the left pocket to the right?

The International Energy Agency (IEA) has just published its 2007 energy review of Germany. Through its size, strategic position and progressive stance, Germany has a strong impact on European energy policy.

Using language that is unusually strong for an intergovernmental organisation, IEA makes the following recommendations regarding nuclear energy, renewables and climate policy:

1. Reconsider the nuclear phaseout by 2022 as it will almost certainly prevent Germany from reaching its full potential of carbon reductions in the longrun. While scenarios can be envisaged where nuclear capacity is being replaced through a combination of energy efficiency and renewable energy, a much more likely scenario will see a growth in gas- and coal-fired power stations, reducing security of supply.
2. Make cost-effectiveness a higher priority when selecting policies to promote renewables, or to choose between renewables and other policies. For example, the feed-in tariff is expected to cost 68 billion euro for the period 2000-2012.
3. While Germany spends a lot of effort to reduce its emissions in the fight against climate change, and with considerable success, a relatively generous allocation of carbon allowances to new coal & lignite power plants under the EU's emission trading scheme works in the opposite direction. Co-ordination through a more integrated environmental policy is needed.