3. The Role of Public Support for the Energy Transition in Germany

This chapter examines the progress of the energy transition in Germany, with a focus on the electricity sector. Attention is paid here to the significant expansion of renewable energies. Political support under the Renewable Energy Act, particularly the operating cost subsidies, has played a decisive role in shaping this development. This chapter highlights both the advantages and disadvantages of this financing model. It also describes the future tasks associated with the expansion of renewable energies. A central issue of the upcoming energy transition in Germany, which is linked to the further development of renewables, is the urgent need for expansion investments in the electricity grid. There is a notable risk of (further) privatization of the electricity grid, which could lead to higher costs for consumers. This jeopardizes the socioecological transition. As will be shown, a publicly financed infrastructure model and greater government involvement in the expansion of clean energy would be significantly more cost-efficient and offer additional advantages.