Eon CEO Leonhard Birnbaum has urged the German government to take decisive action following recent major disruptions in the electricity market, asserting that the success of renewable energy expansion is only half the battle. Speaking to “Welt am Sonntag”, he stressed that building a functional system to utilize this new energy is now the critical challenge. Currently, the market’s instability has led to costly issues, such as periods where surplus solar power could not be utilized, significantly burdening the federal budget.
As such, Federal Economic Minister Katherina Reiche (CDU) plans to introduce a reform package for the energy sector soon. This package will notably address the rules governing compensation for renewable energy sources and their grid connection. However, these proposed changes have drawn criticism from parts of the renewable energy industry, and the SPD parliamentary group has already signaled opposition to the planned legislative adjustments.
Birnbaum praised the reform plan presented by Reiche, stating in the newspaper that the factors that drove the first half of the energy transition will no longer suffice for the second. He argues that the current focus must shift to a “genuine systemic change” encompassing infrastructure, heating supply, mobility, digitalization, and overall flexibility, requiring entirely new regulations.
The Eon CEO also issued a stark warning against any attempts to block these necessary reforms. He noted that while many individuals and groups are comfortable with the old energy transition rules, regardless of the cost, he stressed that Germany cannot afford to remain static. Birnbaum argued that the transformation must be managed in a way that does not ruin the country’s economy. He concluded by supporting Reiche’s initiative, calling it a “courageous package of laws” that deserves backing.