Germany's Energy Policy and Oil Consumption: 1995 to the 2020s

Germany's Energy Policy and Oil Consumption: 1995 to the 2020s

Introduction: Situation before 1995
In 1995, Germany's energy policy was still heavily reliant on fossil fuels. Oil consumption was approximately 133000000 tons, accounting for 40.3% of primary energy. Gasoline consumption stood at 29800000 tons, and diesel fuel at 25500000 tons, with significant energy used in transportation. During this time, environmental awareness was gradually increasing, leading to the establishment of recycling promotion laws, though a full energy transition had not yet been realized.

Phase 1: Establishing the Foundation for Renewable Energy (2000s)
The Renewable Energy Sources Act (EEG), enacted in 2000, marked a groundbreaking shift in Germany's energy policy. This legislation led to rapid expansion in wind and solar power generation, with renewable energy accounting for about 10% of domestic power generation by 2005. Major energy companies such as E.ON and RWE advanced large-scale offshore wind power projects in the North Sea and Baltic Sea.

In Stuttgart, the introduction of CNG (compressed natural gas) buses promoted decarbonization in public transportation. Simultaneously, measures aimed at improving energy efficiency were implemented, enhancing building insulation performance and industrial energy-saving technologies.

Phase 2: Energy Transition (2010s)
The 2010s saw Germany actively promoting the energy transition (Energiewende). Following the Fukushima Daiichi nuclear disaster in 2011, Germany decided to phase out nuclear power, aiming to shut down all reactors by 2022. During this period, the share of renewable energy significantly increased, reaching 27% of domestic power generation in 2014, with wind power at 9.1% and solar power at 5.7%, securing their position as primary energy sources.

Coal consumption showed a downward trend, decreasing from 124000000 tons in 2010 to 90000000 tons in 2019. In urban areas such as Berlin and Frankfurt, the closure of coal-fired power plants accelerated the shift to renewable energy.

Phase 3: Establishing Renewable Energy and Hydrogen Economy (2020s)
Entering the 2020s, renewable energy accounted for 44.4% of power generation. The Coal Exit Law was enacted, aiming to phase out coal-fired power plants entirely by 2038. Hydrogen energy has also gained attention as a new pillar. By 2024, 12.5 GW of hydrogen-compatible gas power plants are planned for construction. In Hamburg's port area, projects converting LNG (liquefied natural gas) to hydrogen are progressing, and Bavaria is constructing hydrogen production facilities using electrolysis technology.

Contributions of Major Energy Companies
RWE has signed a contract to supply 64000000 GWh of green electricity annually to the Salzgitter steel plant starting in 2027. E.ON is introducing smart grid technologies to ensure efficient power supply. BASF is expanding the use of renewable energy at its Ludwigshafen plant, contributing to CO2 emission reductions.