Germany Pivots Energy Shift to Save Industry

Germany Pivots Energy Shift to Save Industry

The German government is prioritizing measures to safeguard the nation’s industrial base, with a focus on ensuring a reliable and affordable energy supply during the ongoing energy transition. Minister for Economic Affairs, Katherina Reiche, emphasized the need to reassess the approach to the energy transition, stating that its success is dependent on maintaining affordability and security of supply.

A key component of this strategy involves the utilization of natural gas-fired power plants. Existing coalition agreements mandate the establishment of a capacity of approximately 20 gigawatts, equivalent to roughly 40 power plants. The Federal Network Agency projects an even greater shortfall after 2031, potentially reaching up to 36 gigawatts.

To address this anticipated gap, the government intends to launch a tender process for gas-fired power plants later this year. This proactive step aims to ensure a secure gas supply by 2030, when the projected shortfall is expected to begin impacting the energy market. Officials stress that maintaining a stable and secure energy supply is a critical priority for the government.