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Empirical Analyses: Describing Facts and Recommending Action.

Security of our energy supply – assessing indicators of vulnerability and risks

A secure and affordable energy supply is crucial for the German economy, supporting both immediate operational needs and long-term growth prospects, especially during times of global instability.

In this study, we have developed a comprehensive methodological framework to evaluate the vulnerability and risks associated with energy supply. Our approach spans multiple layers, from the extraction of raw materials such as oil and gas at the primary energy level, to risks within energy infrastructure (including storage, grids, and power plants), and ultimately to the vulnerability of energy supply for end consumers.

For instance, if primary energy extraction or generation in producer state A is disrupted, there is a potential risk that end consumers in supplier state B may face energy shortages.

Simultaneously, such disruptions present an opportunity for supplier state B to enhance energy self-sufficiency. This can be achieved through the development of domestic energy sources and the establishment of adequate storage capacity, ensuring sustained availability of electricity or gas over extended periods.

This study aims to provide insights into mitigating risks and enhancing resilience in energy supply chains, thereby bolstering Germany's ability to navigate global energy challenges effectively.

Research in energy, resource, and climate economics must be both theoretically sound and application-oriented, and this is our commitment.

We advise public and private institutions using the latest economic methods. Our detailed sectoral and macroeconomic models examine relevant issues from national, European, and global perspectives.

Copyright 2024. Energy Environment Forecast Analysis (EEFA)
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