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Focusing on a resilient energy supply

A secure energy supply is crucial for the prosperity of an advanced industrial nation like Germany. But how can this be ensured in the future? The publication “Economic Policy Highlights” by the Federal Ministry for Economic Affairs and Climate Action has explored this issue in detail.

Germany has established a strong and reliable safety net for its energy security, which is embedded in many areas. However, the experience of the energy crisis triggered by Russia’s invasion of Ukraine, combined with a changing risk landscape, highlights the need to place greater emphasis on the resilience of the energy supply moving forward. In this context, resilience means ensuring that the energy system continues to function under stress (possibly with some limitations) or can be swiftly restored.

During the 2022/2023 energy crisis, the energy supply was maintained only through substantial collective efforts and comprehensive measures, ensuring stability and affordability.

^{Energy imports will continue to be important}

Currently, around 80% of Germany’s primary energy consumption is met through fossil fuels. However, the use of renewable energy sources has increased more than tenfold since 1990. Nevertheless, it is clear that energy supply security cannot mean energy self-sufficiency.

Energy supply security has many dimensions: Just as important as the basic availability of resources is the diversification of necessary energy imports across various countries, transport routes, and actors in the supply chain to avoid one-sided dependencies. Additionally, the protection of energy infrastructure is vital, against sabotage and cyberattacks, but also against extreme weather events resulting from climate change.

^{Stress tests identify weaknesses in the system}

One tool for testing how well the energy sector is prepared for certain shocks is stress testing. These tests can identify weaknesses in the system, which can then be addressed with targeted measures. Each stress test must be preceded by an objective risk analysis that fully considers the changing global risk landscape. Based on this, risk scenarios can be defined, and their impacts can be calculated using models of energy networks and markets.

Such work to strengthen crisis preparedness and crisis management will continue to progress, making Germany’s energy supply more resilient and better prepared for future crises.

The full Economic Policy Highlights article “Ensuring energy security – strengthening resilience” can be found here (in German only)