A recent study has revealed that Germany’s energy transition (Energiewende) could cost €300 billion less if the country prioritizes energy efficiency alongside renewable energy expansion. The study, conducted by the German Institute for Economic Research (DIW), found that improving insulation, upgrading industrial processes, and adopting energy-saving technologies could significantly reduce overall electricity demand. This would lessen the need for costly infrastructure investments in power generation, storage, and grid expansion. Researchers estimate that Germany could cut its energy consumption by up to 30% by 2045, making the transition more affordable and faster.
Currently, Germany is investing heavily in wind, solar, and hydrogen technologies to phase out fossil fuels and meet its climate neutrality goal by 2045. However, without stronger energy efficiency measures, the transition could become unnecessarily expensive. The study highlights that better building insulation alone could save €80 billion by reducing heating demand, while efficient industrial processes could lower costs by another €100 billion. Experts argue that government policies should focus more on financial incentives for efficiency measures, as they would make the transition not only cheaper but also more sustainable in the long run. More