Germany, once a dominant force in Europe based on manufacturing technology, has recently fallen to the status of 'the sick man of Europe' due to its inability to bear high energy expenses. The United States, aiming for artificial intelligence (AI) supremacy, has declared an energy emergency and is committed to securing energy resources. As advanced technologies progress, energy has become a determining factor for national prosperity. This article examines the current and future energy policies of South Korea through the cases of Germany and the United States.[Editor’s note]
April 16, 2023. Germany completely shut down the operations of its last three nuclear power plants, Neckarwestheim 2, Isar 2, and Emsland, cementing its status as a nuclear phase-out nation. This occurred 62 years after it first began operating nuclear power plants in 1961.
However, at the same time as the phase-out of nuclear power, Germany, which became overly reliant on external energy imports, became a major contributor to electricity price increases in neighboring countries. Last year, the amount of electricity Germany imported in excess was enough to power about 5.93 million households for one year. Most European countries maintain interconnected power grids due to their geographical proximity, exporting and importing electricity as needed to ensure supply stability.
After experiencing the oil crisis of the 1970s, Germany pursued a diversification policy to secure energy supply stability. Subsequently, the nuclear accident at Chernobyl in 1986 contributed to the spread of anti-nuclear sentiment within Germany, and discussions on nuclear phase-out and expanding renewable energy formally began when the Social Democratic Party and the Green Party came to power in 1998.
In 2000, Germany enacted the Renewable Energy Act (EEG; Erneuerbare Energien-Gesetz), which focused on expanding solar and onshore wind energy, and established its first nuclear phase-out policy by amending the Atomic Energy Act in 2002. Although the Merkel administration attempted to repeal the nuclear phase-out policy when it took office in 2009, it quickly reversed course back to the phase-out stance following the Fukushima nuclear accident in 2011.
Chancellor Merkel noted that the German government re-evaluated the existing nuclear phase-out plan, deciding on March 14, 2011, to shut down eight nuclear power plants and accelerate the phase-out schedule. In May of the same year, Germany declared it would stop operating nuclear plants by 2022. This goal was postponed by one year due to the impact of the COVID-19 pandemic but was achieved in 2023. The proportion of nuclear power in Germany's electricity production decreased from 14% in 2015 to 6% in 2022, maintaining a 0% share after 2023.
Following the phase-out of nuclear power, Germany became dependent on energy imports from neighboring countries. From January to October 2023, Germany's electricity production decreased by 11.4% compared to the same period last year. During the same period, electricity production in Europe as a whole dropped by 2.4%, while France, which has a high proportion of nuclear power, increased its production by 9.8%.
According to the Korea Trade-Investment Promotion Agency (KOTRA), Germany's total electricity imports in 2023 exceeded its exports by 9.2 terawatt-hours (TWh). This is the first time in history that Germany's annual energy imports surpassed its exports. This figure is projected to rise to 24.9 TWh in 2024. The 24.9 TWh is enough electricity for approximately 5.93 million households (based on a monthly average usage of 350 kWh for a four-person household) for one year.
Last year, the main countries from which Germany imported electricity were France (12.9 TWh), Denmark (12.0 TWh), Switzerland (7.1 TWh), and Norway (5.8 TWh). France, from which Germany imported the most electricity, generates about 70% of its electricity from nuclear power. This led to Germany, in a state of nuclear phase-out, relying on nuclear-derived power.
Germany has a high proportion of renewable energy, but last winter, the phenomenon known as 'Dunkelflaute,' which signifies 'dark doldrums,' occurred frequently. This refers to days when there is no wind and clouds persist for several days. The Dunkelflaute phenomenon drastically reduced wind and solar power generation in Germany. Without nuclear power, Germany increased fossil fuel generation, but supply was absolutely insufficient compared to demand, causing electricity prices to soar. Last winter, the wholesale electricity price in Germany temporarily hit €936 per megawatt-hour (about 1.46 million won), soaring to ten times its usual level.
Germany's failure to achieve electricity independence is also impacting neighboring countries significantly. When Germany's electricity production plummets in a short period, electricity prices in neighboring countries connected to Germany's power grid surge rapidly. This is why Germany is often labeled as 'a nuisance to Europe.'
Sweden has stated that it will refuse to approve the project connecting the power grids of southern Germany and Sweden unless Germany reshapes its electricity market. Eva Busi, the Swedish Minister of Energy, pointed out that 'the high electricity prices in Germany are due to the decision made after the Fukushima nuclear accident in Japan in 2011 to close nuclear power plants and oppose EU-level support for nuclear power.' Although Sweden was a representative nuclear phase-out country, it declared the resumption of nuclear power in 2022.
Norway's Energy Minister commented in December last year that when electricity prices surged in his country, 'it's an absolutely shit situation' and sought to renegotiate the terms of the power grid connection with Germany.
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