ABSTRACT
This chapter examines the types of path-dependencies that cause difficulties in the ability to restructure energy systems with a particular focus on East Germany 1990-1998. It looks at the second largest West German power company, PreussenElectra, its parent company VEBA, and its subsidiary companies, Vereinigte Energiewerke AG and the brown coal mining company LAUBAG. The chapter describes a set of institutions which hamper the introduction of energy efficient energy systems in Germany. The organisation of energy production was based upon large state owned energy companies which via state ownership were closely linked to the brown coal mining companies. The emissions of the DDR system were extremely high compared to the emission in West Germany. The East German energy system is in a process of complete rebuilding due to the low efficiency and high emission characteristics of the old power plants.
