Intensive modernization and reconstruction of the energy sector takes place throughout the world. The EU climate and energy policy will have a huge impact on the development of the energy sector in the coming years. The European Union has adopted ambitious goals of transforming towards a low-carbon economy and the integration of the energy market. In June 2015, the G7 countries announced that they will move away from coal fired energy generation. Germany, which has adopted one of the most ambitious energy transformation programs among all industrialized countries, is leading these transformations. The long-term strategy, which has been implemented for many years, allowed for planning the fundamental transformation of the energy sector; after the Fukushima Daiichi nuclear disaster, Germany opted for a total withdrawal from nuclear energy and coal in favor of renewable energy. The German energy transformation is mainly based on wind and solar energy. Germany is the fifth economic power in the world and the largest economy in Europe. Therefore, the German energy policy affects the energy policy of the neighboring countries. The article presents the main assumptions of the German energy policy (referred to as Energiewende). It also presents the impact of changes in the German energy sector on the development of energy systems in selected European countries.