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Legislative Reforms of the German Energy Law

Legislative Reforms of the German Energy Law

The reform of the energy law - initiated on the grounds of new EU directives - has led to a fundamental paradigm shift in Germany. Ecologic is supporting the German Federal Ministry for the Environment by assessing the revised energy law (Energiewirtschaftsgesetz - EnWG) and its regulations drafted by the Federal Ministry of Economics and Labour, paying particular attention to the environmental aspects.

Single European Market for electricity and gas

For several years now, the European energy laws are in a phase of radical transformation. Behind the much quoted catchwords liberalisation, privatisation, deregulation and re-regulation lie many more profound, oftentimes even contradictory political, legislative and economic concepts. This is the context in which a functional Single European Market for electricity is to be established.

Grid access

Due to the grid-bound quality of electricity non-discriminatory grid access is an essential prerequisite for the creation of effective competition in the electricity market. Since the market for the transport of electricity is commonly known to be a natural monopoly, the usual interest-counterbalancing competitive forces are ineffective, thereby giving new meaning and importance to the legislative acts regarding the organisation of  the grid sector and the grid utilisation.

Realisation of EU directives

In 2003, the EU enacted two new directives relating to the development of the Single European Market. Among other things, these directives called for the creation of a national regulatory agency and for sustained efforts to divest the vertically integrated structures within business establishments. In Germany, the realisation of these directives resulted in a revision of the energy law. During the process of revision, special attention must be paid to renewable energies, due to their important role in federal energy policy.


Partner
Duration
April 2004 to April 2007
Project ID
1844
Keywords
Liberalisation, energy law, EnWG, electricity, gas, grid, divestiture, regulation, Germany