GRAPHICS

Germany's Energy Alternatives

Jul 26, 2013 | 15:57 GMT

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(Stratfor)

Germany's Energy Alternatives

Germany has relatively few domestic energy resources, so meeting its energy needs has been a persistent challenge. The country imports around 90 percent of the natural gas and nearly all of the oil it consumes. Since a shift to renewables is part of Berlin's long-term strategy to limit the country's dependence on energy imports, it cannot be abandoned quickly. Nonetheless, as Germany's energy transition becomes costlier and as economic prospects remain bleak in light of Europe's ongoing crisis, the country's need for cheap energy will remain — as will certain geopolitical implications of German demand.  

Depending on the progress of shale gas development elsewhere in Europe, Germany can be expected to more seriously explore the viability of its own shale gas sector. Currently, Germany receives nearly a third of its oil and 40 percent of its natural gas from Russia, and this energy relationship seems likely to endure in the meantime. Ever since the Nord Stream natural gas pipeline opened in 2011, directly connecting the two countries, Eastern European governments have feared that Berlin would favor ties with Moscow over Continental integration and security concerns. Until Berlin's renewable energy ambitions become reality, this dynamic too seems likely to persist.