Restructuring the East German energy system

Abstract

In the former German Democratic Republic the energy systems was organized centrally with emphasis on autarky and sufficient and cheap energy for all. The use was wasteful with little regard for the environment. After unification of the two German states the East German energy system has been totally restructured. Market economic principles with competition and free pricing have been introduced. The energy industry has been privatized and new generation and transmission equipment built. The gas supply has been changed from town gas to natural gas. The old brown coal power stations are being closed down and new efficient ones built. The transition to a market economy has led to a collapse of industry to one-third of its former size and loss of three-quarters of industrial jobs. Primary energy consumption has been halved. Only road fuels have increased by 50% after car density has reached 90% of the West German level. Strict environmental legislation has resulted in large reductions in emissions and improved ambient air quality. The restructuring is estimated to cost 100 billion deutschmarks of which 50 billion has been spent. The East German energy system is set to become Europe's most modern by the year 2000.