One of the lessons learned from the German effort under the heading of Energiewende is the insight that simply shifting to
renewables and recommending improving energy efficiency is not sufficient to lower greenhouse gas emissions. Combined with
the expected radical change of technologies this requires a more profound understanding of our energy systems. Therefore,
in contrast to most conventional approaches we propose a deepened structural analysis that covers the full energy value chain
from the required functionalities for mechanical, thermal and specific electric energy services via application and transformation
technologies up to primary energy. This deepened structural approach opens and substantially enhances our understanding of
policy designs that are compatible with the Paris Agreement and Sustainable Development Goals. We discover the essential role
of four energy grids, namely for electricity, heat, gas, and information as the key for integrating all components of a newly
structured energy system. Consequently, we conclude that policy strategies focusing on individual components of an energy
system as simply shifting to renewables may from a comprehensive perspective on sustainability in the worst case even turn
out as counterproductive.
JEL-Codes:Q01, Q40, Q55
Keywords:Energy grids, Energy value chain, Sustainable energy systems
Forschungsbereich:Klima-, Umwelt- und Ressourcenökonomie