The German energy firm 1Komma5Grad has formally lodged a complaint with the European Commission in Brussels, challenging the German government’s proposed strategy to bolster energy security through the construction of new gas-fired power plants. The move highlights growing political and economic tensions surrounding Berlin’s evolving energy policy under Minister for Economic Affairs, Katharina Reiche (CDU).
Reiche’s plan, which envisages the addition of up to 20 gigawatts of new gas-fired capacity, has drawn criticism for potentially distorting the energy market and undermining the broader transition to renewable energy sources. 1Komma5Grad argues that these subsidies, intended to secure German energy supplies against periods of low wind and solar output, will artificially inflate energy costs and hinder the development of more sustainable, climate-friendly alternatives.
The government’s rationale centers on ensuring a reliable energy supply, a shift from the approach of her predecessor, Robert Habeck (Greens). While Habeck emphasized a rapid transition to renewables and hydrogen-ready infrastructure, Reiche appears to favor a more immediate reliance on natural gas, even if those plants aren’t designed for future conversion to hydrogen.
This represents a significant policy divergence, raising concerns within the energy sector. Critics contend that alternative solutions, including large-scale energy storage facilities and the further development of distributed power generation, could effectively address the risk of “dark doldrums” – periods of low renewable energy production – without locking Germany into expensive and increasingly problematic dependence on imported natural gas.
Philipp Schröder, CEO of 1Komma5Grad, specifically voiced his frustration regarding the perceived lack of consideration given to “bundled decentralized systems in the form of virtual power plants” as a viable alternative. He demands a “technologically open competition” between centralized and decentralized power generation facilities, suggesting that the current plan prioritizes established, large-scale infrastructure at the expense of innovation and potentially cheaper, more flexible solutions.
The EU Commission’s approval of these subsidies is also under scrutiny. Strict stipulations within EU state aid law mandate that such funding be directed towards “climate-friendly technologies” placing the legality and justification of the gas-fired power plant subsidies in a precarious position. The complaint signals a potential legal challenge and underscores the widening rift between Berlin’s current energy strategy and broader European climate objectives.