Quick compromises needed on open energy policy proposals, German state energy ministers say

The collapse of Germany’s coalition government could threaten important energy transition projects across the country if no precautions are taken quickly, said the current head of the energy minister conference of Germany’s 16 states, Reinhard Meyer. “The coalition’s break-up must not lead to projects getting delayed or even failing,” the energy minister of northern state Mecklenburg-Western Pomerania told newspaper Handelsblatt.

Shortly after the coalition’s collapse became public on 6 November, the energy minister conference members pledged a cross-party effort of state governments to help get key energy policy projects across the line. Social Democrat (SPD) minister Meyer said a reduction of grid fees and the adoption of the Power Plant Security Act are among the most important measures that policymakers need to agree on.

High grid fees had developed into a cost driver of the energy transition and become a hurdle to many companies competing internationally, Meyer argued. The Power Plant Security Act, on the other hand, was needed to ensure investments in back-up capacity in the form of gas-fired power plants that can later be converted to hydrogen and stabilise the power grid at times when renewables output falls short. “There’s a cross-party consensus that we quickly need additional secure plant capacity,” Meyer said.

Moreover, the energy minister conference head said that parliament must adopt a reform of the Energy Industry Act (EnWG) that aims to better integrate solar photovoltaic (PV) installations into the grid. Combining solar panels with smart metering systems that make them more flexible would be necessary to avoid excessive feed-in at peak times and guarantee grid stability.

The outgoing government on Wednesday (13 November) decided on a reform of the EnWG that addresses the solar feed-in problem. However, the remaining parties in the coalition of chancellor Olaf Scholz, his Social Democrats (SPD) and the Green Party, no longer have a majority in parliament and therefore need the help of other parties to adopt outstanding policy proposals. Regarding the reduction of grid fees, economy minister Robert Habeck on Wednesday proposed to rededicate unused funds for a semiconductor factory to reduce grid fees by four billion euros in 2025. However, Habeck would have to find a majority in parliament for this proposal as well.