As Germany increasingly shifts towards renewable energy sources, its need for natural gas, including from countries like Canada, is rapidly diminishing. This was confirmed by Jennifer Morgan, Germany’s climate envoy, who emphasized that studies predict a significant reduction in the gas market as the country advances its renewable energy initiatives.
According to Rystad Energy analysts, Germany is set to surpass its target of generating 80% of its electricity from renewables by 2030. The country’s renewable energy capacity reached 170 gigawatts in 2023, an increase of 12% from the previous year, with substantial contributions from solar and wind energy.
Fabian Ronningen, Rystad’s vice president of renewables and power research, praised Germany’s power sector as a global example of decarbonization and grid electrification. He stated that despite short-term challenges, Germany’s long-term renewable goals appear secure, and the country is poised to reduce its dependency on energy imports.
Morgan highlighted that while natural gas may play a transitional role, it is not a long-term solution. Projections indicate that Germany aims to reduce its gas imports by 30% by 2030 and by 96% by 2050. This sentiment was echoed even during Russia’s conflict with Ukraine when the German embassy expressed limited enthusiasm for Canadian liquefied natural gas (LNG) projects.
While Pieridae Energy Ltd. had proposed an LNG terminal in Nova Scotia, this project faced delays and skepticism about its viability. German officials like Deputy Head of Mission Gerhard Schlaudraff noted that lengthy project timelines are not favorable within Germany’s rapidly evolving energy landscape. A Constitutional Court ruling setting ambitious emissions reduction targets has further emphasized the country’s commitment to renewable energy over gas investments.
During Chancellor Olaf Scholz’s visit to Canada, emphasis shifted towards green hydrogen, indicating a strategic pivot away from LNG. Canadian Prime Minister Justin Trudeau acknowledged the significant investment and complex logistics required for LNG infrastructure, which undermined its feasibility for Canada-Germany energy cooperation.
