Germany Approves NECP, Targeting 30% Renewable Energy by 2030

The Germany Government has finally approved its 2030 National Energy and Climate Plan (NECP), aiming for 30 percent renewable energy by 2030.

The Germany Government, just 20 days ahead of its EU Council Presidency starting in July, has finally approved its 2030 National Energy and Climate Plan (NECP). The country has also adopted a new National Hydrogen Strategy. Both will be critical in shaping the EU green recovery, and will also shape Germany’s approach to its EU Presidency, where its energy priorities are offshore wind expansion, hybrid offshore projects and renewable hydrogen.

The country’s NECP aims for 65 percent renewable electricity and 30 percent renewable energy by 2030. To deliver these targets, it plans to expand its installed wind energy capacities to 67-71 GW onshore and 20 GW offshore by 2030. For onshore wind where Germany has 53 GW today, this means building new wind farms and repowering existing wind farms, especially the large number of those that are coming off the feed-in tariff in the coming years.

“It’s good the German NECP has a number at last for the further growth of onshore wind to 2030. But to deliver on this, they need to simplify their permitting rules and procedures. They need a clear plan for repowering the older wind farms that are coming to the end of their life. And they need the right auction design: their proposed zero/negative bidding for offshore wind is no good,” said WindEurope CEO Giles Dickson.

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The long-awaited “National Hydrogen Strategy” now backs up the country’s climate and energy commitments. The strategy “only” considers renewable hydrogen, produced via electrolysis from renewable electricity, as a sustainable long-term solution. Europe’s largest economy is aiming to become the “global number one” for renewable hydrogen applications and production. To this end, the Strategy provides EUR 7 billion to ramp up domestic production and related value chains. It also includes EUR 2 billion to establish international partnerships for hydrogen production and import, supporting developing countries to scale up their renewable energy capacities.

“Direct electrification will be the main driver of energy decarbonisation. But for hard-to-abate sectors such as heavy-duty transport and some heavy industries hydrogen will play a key role. Well done to Germany for spelling out that this should be renewable hydrogen. Only renewable hydrogen can deliver the Green Deal objective of climate neutrality and help restart Europe’s economy today,” said Dickson.

Ambitious renewable hydrogen targets need more onshore and offshore wind. Or as Germany’s Minister for the Environment Svenja Schulze put it during the presentation of the strategy: “Whoever says yes to renewable hydrogen must also say yes to wind energy.”

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“The German Hydrogen Strategy proves the EU Green Deal is having an impact. Governments, banks and companies are now making decisions based on the goal of climate neutrality by 2050. They know that new investments in fossil technologies will have a limited life-span and are unlikely to generate lasting profits. That’s why Germany has singled out renewable hydrogen as their clear priority,” Dickson concluded.