Reiche announces realignment of energy policy

14.05.2025

Source: E & M powernews

The new Federal Minister for Economic Affairs and Energy, Katherina Reiche (CDU), announces the rapid construction of new gas-fired power plants and appoints new state secretaries for the change in direction.

The new Federal Minister for Economic Affairs and Energy, Katherina Reiche (CDU), has announced a change of course in German energy policy. Renewable energies are to be further expanded, but coordinated more closely with the electricity grid.

Reiche emphasized that an industrialized country like Germany could not be supplied exclusively with electricity from wind and sun. Instead, controllable generation capacities such as gas-fired power plants are necessary. She passed climate protection on to the Ministry of the Environment under Carsten Schneider (SPD).

According to Reiche, a "reality check" is needed in energy policy. Although the progress made so far in expanding wind and solar energy had contributed to reducing CO2 emissions, system risks and costs such as grid expansion and reserve capacities had been underestimated. "Renewable energies alone will not be able to reliably supply an industrialized nation like Germany with electricity at affordable prices," said Reiche.

The rapid construction of up to 20,000 MW of gas-fired power plant capacity is therefore planned. The tendering process should start soon. Domestic gas production is also to be improved. CO2 capture and storage technologies (CCS, CCU) are also to play a greater role.

Greater focus on bioenergy, geothermal energy and hydropower

In addition to wind and solar energy, the Minister announced plans to promote other renewable sources such as bioenergy, geothermal energy and hydropower more strongly. The aim is to implement the EU's Renewable Energy Directive III (Red III) quickly, speed up planning procedures and integrate market-based instruments to a greater extent. The expansion of renewable energies must be better synchronized with grid expansion in the future. To this end, a thorough inventory is planned.
Energy storage systems are to be classified as "in the overriding public interest". Making the electricity system more flexible - for example through dynamic tariffs or bidirectional charging - is also on the minister's agenda. However, she expressly rejected a renaissance of nuclear power because it would be too expensive and no companies would be willing to do so. The new German government, on the other hand, is planning to reduce electricity prices. Specifically, Reiche mentioned the reduction of the electricity tax, the gas storage levy and the introduction of an industrial electricity price. The system of grid fees is also to be reformed.

All colors for the hydrogen strategy

The ramp-up of the hydrogen economy remains a central element of the new strategy. Reiche announced that industrial centers would be connected to the hydrogen core network. Energy partnerships and cross-border infrastructure projects are also to be expanded. According to Reiche, Germany will have to import around 70 percent of the hydrogen it needs. Openness to technology is essential here.

Reiche spoke out in favor of pursuing different technological paths and making use of the leeway in implementing European requirements - especially in the renovation of buildings. Beyond energy policy, Reiche emphasized the importance of new free trade agreements. Germany must position itself more broadly economically and seek new agreements with Chile, India and the USA, among others.

New state secretaries in the ministry

The Minister appointed her new management team in the last few days. Frank Wetzel, an experienced civil servant, will take on the role of Permanent State Secretary at the Federal Ministry for Economic Affairs and Energy (BMWE). In future, he will be responsible for areas including heat, hydrogen, efficiency, electricity and industrial policy. Wetzel was previously responsible for economic and energy policy issues at the Federal Chancellery.

Parliamentary State Secretaries Gitta Connemann and Stefan Rouenhoff had previously received their certificates of appointment. Connemann (CDU) comes from Leer in Lower Saxony, is a lawyer and has been a member of the German Bundestag since 2002. She is the Federal Government Commissioner for Small and Medium-Sized Enterprises. Previously, she worked in the Bundestag primarily on issues such as food, agriculture and consumer health protection.

Rouenhoff (CDU) has been a member of the Bundestag since 2017 and holds a degree in economics. He comes from Kleve (NRW). He has worked for his party on the Economic Affairs Committee since 2017, and from 2012 to 2014 he worked as a ministry spokesperson in the BMWE under Ministers Philipp Rösler (FDP) and Sigmar Gabriel (SPD).

The Minister also paid tribute to the outgoing State Secretaries Anja Hajduk, Philipp Nimmermann and Udo Philipp (all Alliance 90/The Greens) for their work in the previous legislative period.

Author: Susanne Harmsen