Bundestag passes final energy package

03.02.2025

Source: E & M powernews

The Bundestag has passed a package of several energy laws. This was made possible by an agreement between the SPD, Green and opposition CDU/CSU parliamentary groups.

The legislative amendments passed by the Bundestag on January 31 include a longer funding period for combined heat and power (CHP) plants. It also includes adjustments to the expansion of wind energy and bioenergy as well as measures to better integrate electricity from PV systems into the grid. The plans still have to pass the Federal Council. Energy associations reacted with relief, but immediately called for further resolutions by the next federal government.

CDU energy politician Andreas Jung said that fundamental new energy policy decisions would have to be made in the next
legislative period. Federal Economics Minister Robert Habeck (Greens) welcomed the agreement between the parliamentary groups, which had made it possible to pass the urgently needed regulations. "The jointly found solutions are good news for the expansion of renewable energies, for system security and for the affordability of the electricity supply," he said.

Four legislative initiatives adopted

A number of key measures have been bundled into a total of four legislative initiatives. The market integration of photovoltaic systems will be strengthened to improve the integration of temporary power peaks in the grid, cyber-secure and economically robust digitalization will be advanced and the operation of storage systems will be simplified.

A significantly improved connection perspective is also being created for biogas plants whose initial funding will expire in the next few years. At the same time, more flexible operation and thus more system usefulness of the plants will be promoted. The application period for the promotion of CHP plants will be extended and the control effect on the expansion of wind energy plants will be strengthened. Furthermore, grid connection points may now be used by several plants.
VKU Managing Director Ingbert Liebing praised the municipal companies: "It deserves great recognition and respect that so many members of parliament across party lines have agreed to the draft legislation." The extension of the KWKG and amendments to the Energy Industry Act provided the urgently needed tailwind for the energy transition. At the same time, he called for a fundamental revision and extension of the KWKG until the mid-2030s, which must be implemented by the new federal government.

The municipal utilities association Thüga also called CHP plants "indispensable for the success of the local energy and heating transition".

Associations with further demands

The biogas industry has expressed its relief at the biomass package. The package would give biogas plants a perspective for the next two years, said Horst Seide, President of the German Biogas Association. "Thanks to dedicated cooperation and great support from the industry, important energy legislation has been passed today, thus taking the energy transition a step further," said Kerstin Andreae, Managing Director of BDEW.

"In particular, the measures adopted in the amendment to the energy law to curb PV feed-in peaks make an enormously important contribution to grid stability," she commented. The reorientation of the smart meter rollout towards a "control rollout" is also a key step towards the secure grid integration of renewable energies. A new government will have to create further clarity for CHP, be it by stabilizing the legal framework or by embedding CHP in the capacity market.

The German Energy and Power Industry Association (VIK) calls the laws passed "overdue". They also fall short in parts, criticized Christian Seyfert, Managing Director. Adjustments to the funding structure are necessary in order to ensure the flexible use of industrial CHP plants and to guarantee sufficient planning and investment security for companies, he said. "An extension of the CHP Act until 2035 and a freeze on eligible full-load hours at the 2024 level would provide the urgently needed perspective," Seyfert demanded of the incoming German government.

Author: Susanne Harmsen