a power plant strategy, an amendment to the Renewable Energy Sources Act (EEG), and a grid package.. According to a source at the Ministry of Economics quoted by Handelsblatt (Wednesday edition), all three initiatives will now undergo inter-departmental review.
The power plant strategy, which has been named the “Electricity Supply Security and Capacity Act” (StromVKG), now plans for two tenders this year to support the construction of new power plants.
Previously, the legislation originated from the cabinet of Economy Minister Katherina Reiche (CDU) but had been blocked by Finance Minister Lars Klingbeil (SPD). Prime Minister Friedrich Merz (CDU) stepped in on Monday to mediate the dispute between Klingbeil and Reiche. At an event in Berlin, he stated his expectation that the Social Democrats should “resolve some of the blockades that we unfortunately experienced repeatedly in the past weeks and months”.
Reiche’s plans, however, face criticism. Energy economists and environmental groups warn that the power plant strategy places too much emphasis on gas-fired power plants and disadvantages alternatives like electricity storage, thereby solidifying new fossil fuel dependencies. Regarding the proposed EEG amendment, criticism has been raised that cuts to feed-in tariffs could weaken the private build-out of solar energy.
Furthermore, industry associations argue that the planned grid package introduces new risks for energy generators, potentially endangering the financing of renewable energy expansion. To date, the federal government has fallen behind the legislatively mandated targets for renewable energy development.