Michael Hackethal. Photo: IRENA
The importance of innovation in Germany’s energy policy was laid out in Bonn.
Michael Hackethal, Head of Division at Germany’s Federal Ministry of Economic Affairs and Energy, was speaking at the biennial International Renewable Energy Agency (IRENA) Innovation Week.
“For Germany, our energy policy is guided by the insight that a flexible, renewable and efficient energy system is key to meet our decarbonisation targets and to reach net zero by 2045,” said Hackethal.
“It is also central to strengthening our energy security and to build a strong basis for a competitive and successful economy and create future-proof jobs.”
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Hackethal, who joined the German Federal Ministry for Economic Affairs and Energy in 2008 and before that worked for the Delegation of the European Commission in Moscow and for a network of microfinance and SME banks in the Commonwealth of Independent States region, said that in “this fractured international landscape”, Germany remains “a firm believer in our markets need to remain as open as possible for trade and investment”.
“It is only in this way that we can reap the mutual benefits of international cooperation for the good of the energy transition.
Innovation insights
Germany’s experience of the energy transition – and the role of innovation in it – offers insights that may prove valuable to the wider world, he said.
“Our energy transition has evolved from a national policy initiative into a comprehensive innovation ecosystem that demonstrates the potential for systematic transformation.”
He said governments “cannot force innovation, but they can encourage it and create the necessary conditions for enterprising companies, and they can support innovative newcomers”.
As an example of this, he highlighted the Startup Energy Transition (SET) initiative, competition and network, which is now in its tenth year, and was launched by the German Energy Agency, DENA.
Innovation alumni
This year about 700 startups from across the world participated, bringing the total since its inception to more than 4000.
“SET has grown intro a strong alumni community that continue to inspire and drive each other forward in their innovation journeys.
Read more about SET:
SET Awards spotlight top five energy and climate start-ups of 2025
Turning to the literal building blocks of innovation, he said the infrastructure requirements that come with the energy transition “are without doubt substantial and urgent”.
“To achieve the tripling of renewable capacity by 2030 [as set out in the agreements of COP28], we need breakthrough innovations in grid flexibility, energy storage technologies, green hydrogen production and digital integration systems.
“Each of these challenges represents significant market potential and opportunities for international cooperation.”
He said the German experience has shown that successful energy transition innovation needs the alignment of three fundamental elements: “Forward-looking policy frameworks; appropriate financing mechanisms; and robust knowledge sharing.”
He said all three components must be cemented through collective engagement.
Innovation in action:
Researchers remanufacture wind turbine parts to reduce waste
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Electrification key for industrial competitiveness finds study
