Energy transition in the context of "Low carbon"

Energy security is the association between national security and the availability of natural resources for energy consumption (as opposed to household energy insecurity). Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.

Renewable resources and significant opportunities for energy efficiency and transitions exist over wide geographical areas, in contrast to other energy sources, which are concentrated in a limited number of countries. Rapid deployment of wind power and solar power and energy efficiency, and technological diversification of energy sources, would result in significant energy security.

A super grid or supergrid is a wide-area transmission network, generally trans-continental or multinational, that is intended to make possible the trade of high volumes of electricity across great distances. It is sometimes also referred to as a "mega grid". Super grids typically are proposed to use high-voltage direct current (HVDC) to transmit electricity long distances. The latest generation of HVDC power lines can transmit energy with losses of only 1.6% per 1,000 km (621.4 miles).

Super grids could support a global energy transition by smoothing local fluctuations of wind energy and solar energy. In this context they are considered as a key technology to mitigate global warming.

Fossil fuel phase-out is the proposed gradual global reduction of the use and production of fossil fuels to zero, to reduce air pollution, limit climate change, and strengthen energy independence. It is part of the ongoing renewable energy transition.

Many countries are shutting down coal-fired power stations, and fossil-fuelled electricity generation is thought to have peaked. But electricity generation is not moving off coal fast enough to meet climate goals. Many countries have set dates to stop selling petrol and diesel cars and trucks, but a timetable to stop burning fossil gas has not yet been agreed.

Electrification is the process of powering by electricity and, in many contexts, the introduction of such power by changing over from an earlier power source. In the context of history of technology and economic development, electrification refers to the build-out of the electricity generation and electric power distribution systems. In the context of sustainable energy, electrification refers to the build-out of super grids and smart grids with distributed energy resources (such as energy storage) to accommodate the energy transition to renewable energy and the switch of end-uses to electricity.

The electrification of particular sectors of the economy, particularly out of context, is called by modified terms such as factory electrification, household electrification, rural electrification and railway electrification. In the context of sustainable energy, terms such as transport electrification (referring to electric vehicles) or heating electrification (referring to heat pumps powered with solar photovoltaics) are used. It may also apply to changing industrial processes such as smelting, melting, separating or refining from coal or coke heating, or from chemical processes to some type of electric process such as electric arc furnace, electric induction or resistance heating, or electrolysis or electrolytic separating.

Low-carbon electricity or low-carbon power is electricity produced with substantially lower greenhouse gas emissions over the entire lifecycle than power generation using fossil fuels. The energy transition to low-carbon power is one of the most important actions required to limit climate change.

Low carbon power generation sources include wind power, solar power, nuclear power and most hydropower. The term largely excludes conventional fossil fuel plant sources, and is only used to describe a particular subset of operating fossil fuel power systems, specifically, those that are successfully coupled with a flue gas carbon capture and storage (CCS) system. Globally almost 40% of electricity generation came from low-carbon sources in 2020: about 10% being nuclear power, almost 10% wind and solar, and around 20% hydropower and other renewables. Very little low-carbon power comes from fossil sources, mostly due to the cost of CCS technology.

An energy superpower is a country that supplies large amounts of energy resources (crude oil, natural gas, coal, etc.) to a significant number of other countries - and therefore has the potential to influence world markets for political or economic gains. Energy superpower status might be exercised, for example, by significantly influencing the price on global markets or by withholding supplies. Nowadays, the term "energy superpower" is increasingly used to characterize nations at the forefront of energy transition and the development of renewable energy resources.

The term "energy superpower" lacks a precise scholarly definition and is primarily a political term. It is not a concept rooted in rigorous academic or scientific categorization but rather a label used in political discourse to describe countries that wield significant influence in the global energy landscape. This term is subject to interpretation;and can be applied differently by individuals and organizations - depending on their specific agenda or perspectives. As a result, the meaning and applicability of the term "energy superpower" may vary.

The German economic crisis is a significant downturn of Germany's economy that marked a dramatic reversal of its previous "labour market miracle" period of 2005–2019. The country, which had been considered to be Europe's economic powerhouse in prior decades, became the worst-performing major economy globally in 2023 with a 0.9% contraction, followed by further 0.5% contraction in 2024 leading to recession. Several economists, business figures, and other experts expressed concern that Germany's economic downturn could cause the nation to reclaim its reputation as the "sick man of Europe" from the 1990s. Economists stated that Germany's economy was in a permanent crisis mode, with the Handelsblatt Research Institute declaring that it was in its "greatest crisis in post-war history" after projecting a third consecutive year of recession in 2025.

This decline was attributed to multiple factors: A lack of urgency in diversifying its energy supply before 2022 leading to increased energy prices (coinciding factors include the Russian invasion of Ukraine, its nuclear power phase-out, slow pace of energy transition, and increased cost of fossil fuels partly due to tax increases), comparatively lower productivity due to slow adaptation of digital technologies, German politics (specifically the debt limitation, the CDU/CSU-filed application to the Federal Constitutional Court successfully deeming a €60 billion climate fund unconstitutional as well as the subsequent in-fighting within the governing Scholz cabinet) obstructing economic stimuli, global shifts in demand hurting the country's export-led economy while its higher internal real wage growth-led demand is delayed due to high cost of living, as well as a skilled worker shortage arising from demographic challenges such as population ageing, low participation of women in the workforce and slowing immigration to Germany.