German parliament adopts laws for faster grid & hydrogen expansion

Germany’s federal parliament (Bundestag) has passed a first batch of energy legislation, designed to accelerate the expansion of the power grid and protect consumers from rising energy prices when a supplier leaves the market. “For a successful energy transition, it is crucial that the grid expansion can keep pace with the accelerated expansion of renewable energies," said economy and climate minister Robert Habeck, whose ministry had prepared the bills. The legal changes include: All power grid planning will have to be geared towards a climate neutral grid in 2045; large and small energy storage facilities will be permitted to act on the power market and offer both storage and power input without having to pay taxes and fees twice; energy providers have to notify their customers three months in advance before they stop supplies; the construction of distribution grids and hydrogen pipelines will be labelled as “being in the interest of the public good” – which will make their construction easier. Following the vote in the Bundestag, the bill has to now be passed by the second parliamentary chamber (Bundesrat of state governments) which is set to take place in July.

The German government announced at the beginning of the year that it would pursue a major overhaul of energy and climate legislation to make Germany climate neutral by 2045 and achieve an almost 100 percent renewable power grid by 2035. Faced with the added pressure because of the war against Ukraine and ceasing gas deliveries from Russia, the first part of the so-called Easter Package included even more renewables acceleration than expected. After the first set of the package has now been passed by parliament, further changes to the Renewable Energy Act and other bills are expected to be voted on shortly before the summer break in the middle of July.