Energy transition monitor sees small progress and large gaps

Energy transition stress test: Progress, deficits and need for political action

21.03.2025

Source: E & M powernews

The expert commission on energy transition monitoring has published a status update. Progress in the expansion of green electricity is offset by deficits in grids and energy security.

The commission of experts appointed by the German government to monitor the energy transition presented its latest status update on March 21. The report shows a lot of yellow and red in the traffic light colors.

While the expansion of renewable energies is in the green zone, there are considerable challenges in the areas of grid infrastructure, energy security and energy efficiency. The commission is particularly critical of the lack of market integration of renewable energies, delays in the construction of controllable power plants and the faltering ramp-up of the hydrogen economy.

According to the chairman of the commission, Prof. Andreas Löschel, the conditions for the energy transition have improved in some areas, such as grids, energy costs and greenhouse gas emissions. At the same time, new problems have arisen that urgently require political action. "We still need to create the right framework conditions for the energy transition," said Löschel.

More progress needed in the building and transport sector

The expert commission, consisting of scientists Andreas Löschel, Veronika Grimm, Felix Matthes and Anke Weidlich, regularly examines the progress of the energy transition. The current report emphasizes the need for action in the decarbonization of buildings and transport as well as the transformation of industry. Prof. Weidlich underlines the importance of electrification as a central strategy. It is particularly important to reduce electricity prices in order to promote the use of electric vehicles, heat pumps and electrified industrial processes.

"The increase in electricity demand by 2030 could be overestimated due to current electrification trends," said Prof. Grimm. By adjusting investment decisions accordingly, the increase in grid usage fees could be reduced over time.

At the same time, however, accelerated planning and approval of line projects remains essential. "The costs of grid expansion could also be reduced by providing for overhead lines when implementing direct current projects instead of giving priority to underground cables, as has been the case to date," said Grimm.

Increasing security of supply

Another problem area remains the security of electricity supply. While the expansion of renewable energies is gaining momentum, controllable power plant capacities are continuing to decline. Felix Matthes emphasizes that the construction of new, flexibly deployable gas-fired power plants is necessary to ensure security of supply. He calls for a revised power plant strategy with less restrictive rules for the use of hydrogen.

The experts also warn of high dependencies on raw materials and insufficient diversification of natural gas imports. Despite all the progress made, the share of renewable energies in total final energy consumption is still too low. The report is particularly critical of the progress made in efficiency in the building sector, which has fallen "far short of the targets".

The Commission's energy transition traffic light still shows a need for action in many areas: While the expansion of renewable energies is the only sector that is largely progressing positively, grid expansion, energy security and energy efficiency are under considerable pressure. According to the report, the annual reduction in greenhouse gas emissions must be doubled in order to achieve the climate targets for 2030. The current reduction in emissions is 48% compared to 1990 levels, and at least 65% is required by 2030.

The expert commission was set up in 2011 and sees its status update as a guide for political decision-makers, particularly in view of the upcoming change of government. The expert groups of the coalition talks between the CDU/CSU and SPD are still meeting until March 24.

The status update on energy transition monitoring is available for download as a PDF.

Susanne Harmsen