BDEW sees 2026 as a key year for energy policy

18.12.2025

Source: E & M powernews

In its annual review, BDEW refers to a successful year for the energy industry. Many unresolved issues need to be resolved quickly by politicians, with new power plants leading the way.

"Electricity generation from renewable energies has increased further, gas supplies are reliable and CO2 emissions are falling again." This is how BDEW Managing Director Kerstin Andreae summarized the industry's successes for the year just ended at a meeting with journalists. According to the energy association's 2025 annual report presented there, electricity generation amounted to just under 500 billion kWh, a slight increase of 0.8 percent compared to the previous year.

Photovoltaics was largely able to compensate for the historically low wind levels in the first quarter, bringing the share of renewable energies in electricity generation to 58%. However, wind power remains by far the most important energy source in the electricity mix, followed by photovoltaics, which is in second place ahead of natural gas for the first time. "Wind and solar are now clearly the main suppliers of electricity in Germany," says Andreae.

Many tasks for 2026

In the coming year, it will be important to adjust the funding and investment framework for renewable energies, which must not slow down expansion. "At the same time, the expansion of renewables must be better aligned with the grids and there must be a greater focus on cost and system efficiency," said Andreae. In addition to targeted funding incentives, this also includes optimizing tenders. She also appealed to the government for a serious reduction in bureaucracy to be a major lever.

The BDEW also sees growing pressure to act when it comes to building new controllable power plant capacities. The Federal Network Agency sees a need for at least 22,000 MW of controllable capacity as a backup for renewable electricity and a replacement for coal-fired power plants. "The construction of new gas-fired power plants that can later be operated with hydrogen capability is more urgent than ever," warned Andreae.

Even with tenders at the beginning of 2026, new power plants would probably not become effective until the early 2030s due to construction times. "The Power Plant Safety Act and a subsequent technology-neutral capacity market must therefore be a priority now," she warned. Against this backdrop in particular, the ramp-up of the hydrogen economy needs more political attention. She called on the Federal Network Agency to promptly communicate a minimum rate of return for energy companies in order to maintain investor confidence.

Shaping the heating market for climate protection

There are also major challenges in the heating market: Three out of four households continue to heat with gas or oil. Although the proportion of heat pumps in new residential construction is now rising to 67%, the conversion of existing buildings remains a mammoth task. "Millions of heating systems must become renewable in the next two decades. To achieve this, we need reliable, comprehensible and practicable rules," says Andreae.

The legal and economic structure of the transformation of the gas grids is also crucial. "We need regulations as quickly as possible on how the transformation of the gas supply can succeed in such a way that neither households and businesses nor network operators and suppliers are left with unaffordable costs," appealed the BDEW boss.

More funds for investments

With a view to the black-red federal government, BDEW welcomes initial measures to reduce energy prices, such as the subsidy for transmission grid fees. However, tax relief for industry, reliable investment conditions and fewer bureaucratic hurdles are also necessary in order to strengthen Germany as a business location. Andreae also criticized the financing of consumptive measures from the climate and transformation fund: "These funds are then lacking for urgently needed future investments."

Driving forward hydrogen

The BDEW recommends a hydrogen alliance at EU level, which Germany could lead with France. This should promote a joint commitment in the EU that reduces bureaucracy and ensures a rapid ramp-up. The hope is that this would significantly reduce production costs for H2.

In addition, legal and regulatory frameworks outside the H2 core network would have to be established for storage facilities, distribution networks and import corridors, Andreae reminded the audience. The countries could incentivize demand through price guarantees and supply hedging via contracts for difference (CfD). Like the green steel quota, a hydrogen quota could also be a driving force for its introduction.

The BDEW Annual Report on Energy Supply 2025 is available online.

Author: Susanne Harmsen