Research
27.11.2024

Ariadne policy brief: Mapping a path to climate-neutral power system in Germany

A new policy brief outlines key challenges and actionable solutions for transitioning Germany’s electricity market to renewable energy. 

Researchers from the Hertie School’s Centre for Sustainability, Clemens Stiewe and Silvana Tiedemann, contributed to a new policy brief published as part of the Ariadne project. The brief addresses five major hurdles: scaling up renewables, phasing out fossil fuels, ensuring energy security, balancing supply and demand, and managing transformation costs fairly. Recommendations include introducing dynamic electricity pricing to encourage consumption shifts and aligning reforms with the EU’s ongoing electricity market overhaul. The policy brief emphasizes the need for flexible and efficient market designs, especially in light of fluctuating wind and solar power availability.  

The study also addresses the growing urgency for reform in response to the Russian invasion of Ukraine, which has increased the pressure to establish new economic, technical, and legal frameworks for a fossil-free energy market. The EU’s planned electricity market reform, parts of which still need to be implemented at the national level in Germany, serves as a key focus. 

By introducing a systematic evaluation framework based on criteria such as cost efficiency, security of supply, emissions reduction, and fairness, the authors aim to guide policymakers in choosing the most effective tools for the energy transition. The use of dynamic electricity tariffs, for example, was found to have broadly positive impacts across these dimensions. 

The policy brief underscores that achieving a climate-neutral energy system is a societal challenge requiring alignment across governments, private households, and businesses.  

Read the full report here

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