Germany's reorientation of its energy policy-the Energiewende (energy transformation) initiated by the previous coalition government in 2011-has led to a sharp rise in the proportion of electricity produced by renewable energy. An official target is for renewables to provide 40% of electricity generation by 2025. The plan aims to phase out nuclear energy completely by 2022 and replace lost capacity with renewable sources.
One consequence of the policy shift, and of existing generous state subsidies for renewables producers and large industrial consumers, has been a sharp rise in utility bills for most German households. Energy prices are almost certain to continue to trend higher over the forecast period. According to a report by McKinsey, a consultancy, German household electricity prices are 46% above the European average.

Energy report 5

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Energy policy 6

Oil and gas 6

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