Energy Efficiency

Energy efficiency for carbon-neutral energy supply

Germany is seeking to achieve the complete decarbonization of the energy sector through intensive efforts in all demand markets, the rebuilding of energy infrastructure, the phasing out of fossil fuels, and the massive acceleration of renewable energy expansion. 

Fifty percent of heating is to be produced in a climate-neutral fashion by 2030. From 2024 on, all newly installed heating units have to be at least 65 percent renewably powered, including so-called H2-ready heating systems, which can be completely converted to use sustainably produced green hydrogen. Significant state subisidies will be available to both private households and businesses to help them confirm to the new regulations.

A new building strategy is also being developed to promote climate neutral buildings.

Industry will be transformed through the provision of “Carbon Contracts for Difference” to make climate-neutral manufacturing and production economically viable for industry. The new industry-friendly funding and investment framework will help businesses make the transition to climate-neutral production.

The National Action Plan on Energy Efficiency

The National Plan on Energy Efficiency provides a comprehensive package of measures to improve Germany’s energy performance. Alongside the development of renewable energy sources, efficient use of energy is imperative to realizing the country’s climate goals. By 2050, Germany intends to cut primary energy consumption by 50 percent compared to 2008 levels.

Germany's new Energy Efficiency Law 

Germany's new Energy Efficiency Law (EnEfG) provides for energy savings by 1.5 percent a year until 2030, setting a binding target of a 550-terawatt-hour reduction of final energy consumption by the end of the decade. The new law comits industry and public sector alike to cut down energy consumption. Measures include:

• Germany’s national and regional governments are directly responsible for a 50-terawatt-hour cut, with the public sector expected to cut energy consumption by two percent a year. 
• All companies with an annual energy consumption of more than 15 gigawatt hours a year have to introduce energy management systems and draw up concrete, publicly accessible energy efficiency measures. 
• Data centers will have to fulfill energy-efficiency standards and use the heat they generate.
• Industrial waste heat is to be generally avoided or, when unavoidable, be put to use.