Energy industry urges German lawmakers to put energy policy stability ahead of party politics

Policymakers in parliament should help the minority government of chancellor Olaf Scholz get key energy policy proposals over the line before the upcoming snap election in early 2025, the Federation of German Energy and Water Industries (BDEW) has said. The parliament would only have two full weeks to debate and decide remaining proposals if the provisional schedule of dissolving it and preparing for the snap election holds, and Scholz holds a vote of confidence on 16 December, the energy industry lobby group said.

“It is imperative that this time is used [well],” said BDEW head Kerstin Andreae, adding that some energy policy projects otherwise would run into legal and technical challenges. This would concern the Energy Industry Act, which is needed to solve issues related to the fast expansion of solar PV installations and their effects on the grid. “There has to be a reliable framework for the further expansion of solar PV and the safe operation of our grids,” Andreae cautioned. “Party politics must not threaten the stability of distribution grids,” she added. 

The energy industry lobbyist argued that there was no reason to block the passing of laws on which most parties generally agreed. This would not only concern measures to bring down costs for customers, but also the Power Plant Security Act, which is meant to pave way for the construction of new gas-fired backup plants that can later be converted to run on hydrogen, for times of little wind or sunshine. “Even if this law still has to be adopted by [chancellor Scholz’] cabinet, we appeal to the government and the parties’ parliamentary groups to agree on practicable legislation as soon as possible to allow the necessary investments,” Andreae urged.

The day after the coalition’s break-up on 6 November, the head of solar industry association BSW Solar, Carsten Körnig, called upon policymakers to refrain from “party-tactical and ideological delays” that could hurt industry and roughly 150,000 jobs. “We appeal to all members of Germany’s parliament to show that they can be decisive and make compromises across party lines and ensure investment security for the energy transition,” Körnig said.

He stressed that the solar industry expected a clear commitment to further the expansion of the technology “from all serious parties” in election campaigns. This would be a prerequisite both for reaching the previous government’s agreed climate action targets as well as for keeping Germany’s solar PV and energy storage industry competitive. “This is an aim shared by the majority in society,” Körnig added.

Earlier this week, economy minister Robert Habeck said Germany needs a cross-party effort to hold course on climate and energy policy. Habeck warned that no party should use key energy and climate policy projects as bargaining chips in the upcoming snap election, which is likely to take place on 23 February. The volatile international environment – exacerbated by the U.S. election result – required Germany and Europe to stand up for international climate and energy targets, Habeck had argued.