Renewables industry warns Germany's energy ministry is prioritising fossil fuels

Germany’s renewable energy industry has warned that the economy and energy ministry is putting renewables at a disadvantage across the board while prioritising fossil energy sources. "Whilst the economy ministry is planning to comprehensively worsen the framework conditions for renewables, fossil fuels are to be given preferential treatment," said Ursula Heinen-Esser, head of the Renewable Energy Federation (BEE).Heinen-Esser argued that the energy crisis triggered by the Iran war must act as a catalyst for a shift away from oil and gas, calling for a clear commitment to the energy transition ahead of a meeting of the country’s state energy ministers on the North Sea Island of Norderney. “The current energy crisis once again shows that renewables strengthen supply security, stabilise prices and create value locally,” she said. According to Heinen-Esser, the slow progress in decarbonising Germany’s transport and heating sectors is now being felt across the economy, as high fossil fuel prices weigh on companies and consumers alike. Electricity prices were shielded from the spikes seen on gas and oil markets due to the high share of renewable energy in the country’s electricity generation mix, she added. “This is why we expect a clear signal for the energy transition from the energy minister conference against attempts by the federal government to slow progress and for reliable investment conditions in all sectors,” said Heinen-Esser. The BEE president argued that policies pursued by Germany’s economy and energy minister, Katherina Reiche of the conservative Christian Democrats (CDU), contradict the role of renewables in strengthening resilience and value creation. Measures included in a Renewable Energy Act (EEG) reform, a grid package, auctions for backup power plants and the Building Modernisation Act all would create hurdles to steady renewable energy expansion, Heinen-Esser said, adding that batteries and biogas were neglected as backup options while the government has opened the door for installing new gas and oil heating systems for decades to come. “The urgently needed transformation of the fossil-dominated energy system could be delayed for years,” she said. Reiche’s proposed rules, such as scrapping support for small rooftop-solar projects and capacity reservations for redispatch measures in the grid package, would deter private citizens and large-scale investors alike and could make many projects “impossible to fund,” Heinen-Esser argued.Christian Meyer, energy minister of Lower Saxony, said the states had many questions about the federal government’s energy policy direction, news agency dpa reported in an article published by the Süddeutsche Zeitung. “There’s a lot of talk about regulatory changes proposed by the federal economy minister that involve slowing down or stopping things,” the Green Party politician said, adding that this would create a lot of uncertainty in the industry. “We want a [federal level] schedule similar to that in the states, with an accelerated roll-out of renewables and of storages,” the state minister said. The conference would determine whether the energy transition faces “a rollback, a slowdown or a doubling down,” he added.

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