Renewable energy last year became the No 1 source of electricity supply in Germany and accounted for 27.3 per cent of our consumption. At the same time, our economy grew by 1.4 per cent, while power consumption in total fell by almost 4 per cent. The use of renewable energy has avoided almost 150 million tonnes of greenhouse gas emissions.
This development shows that we managed to decouple energy consumption from economic growth and that renewable energy is part of the expansion.
This would not have been possible without the fast-pace technological advances and cost savings in recent years – particularly in wind and solar energy. Today we can generate electricity from new wind and large photovoltaic facilities at the same overall cost as newly built hard-coal or gas-fired power plants.
This drop in costs of renewables’ technology opens up major opportunities for all countries that are now investing in renewables. Using world market fuel prices as a reference, electricity from wind and solar power could be considerably cheaper for solar-rich countries such as the Arabian Gulf countries and others in the Middle East.
Another added benefit is the new jobs that are created in the power industry. Over just a few years, Germany created about 370,000 jobs in this field. The UAE and several other countries in the region have recognised the potential of renewables and have set themselves renewables targets. This gives them an opportunity to be at the vanguard of the development in their region.
Increasing the use of renewables has become one of the key pillars of the energy strategies for many countries. Nowhere is this better reflected than in the membership of Irena, the International Renewable Energy Agency based in Abu Dhabi. The organisation ensures its members have access to best practices that have already been adopted by pioneering states as they reach their renewables targets. Germany and the UAE were among the first supporters of the agency.
There are a number of challenges ahead of us in Germany to transform our energy system. In future, the major portion of power supply will come from wind power and photovoltaics. These two technologies are capable of producing sufficient energy to meet our renewables targets in a cost-effective way.
Complementing sources are hydro power and bioenergy. As electricity fed in from wind and photovoltaic installations fluctuates depending on the weather and time of day, the entire system has to become more flexible. The most important step here is to expand the grid, both in Germany but also across borders within Europe. We also have to adjust our electricity market so that it provides energy security while also ensuring sufficient levels of investment for efficient new power plants based on fossil fuels. In addition, measures for flexibility are also needed on the demand side and include storage facilities.
The transition to renewable energy must not only develop into a success story for the environment, but also in economic terms. This is true for Germany and for other countries that have embraced renewables.
The potential for renewables in the Arab countries is vast, particularly for solar power. Some Arab countries have begun to use renewable energy. With the exception of a few lighthouse and pilot projects, especially in the UAE, there is still an immense untapped potential in the GCC countries.
Recently the groundbreaking result of the bidding processes for a photovoltaic power plant in the emirate of Dubai was applauded. Germany and the UAE are linked by a strategic cooperation and have deepened their economic and political ties. We would like to build on this and share our experience in expanding the use of renewables with all interested partners in the UAE.
Rainer Baake is the German state secretary in the federal ministry of economy and energy, and the head of the German delegation to the World Future Energy Summit, which begins today
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