Katharina Reiche: No 100 Percent Renewable Energies

The new Federal Minister for Economic Affairs, Katharina Reiche, stressed in her inauguration speech that renewable energies alone are not enough to supply an industrial country like Germany. By doing so, she has rejected the potential goal of reaching 100 percent renewable energy. The ministry has also acquired a new name. From now on, it will operate as the Federal Ministry for Economic Affairs and Energy. The term "climate protection," which was introduced by her predecessor Robert Habeck, has been dropped. 

"The expansion of wind and solar energy has advanced our climate protection efforts," said Reiche. "However, system risks and costs have been underestimated. That's why we need a reality check in energy policy." This includes rejecting the notion that regenerative energies could potentially supply the economy and society entirely in the future. 

"Renewable energies alone cannot reliably supply an industrial nation like Germany with electricity at affordable prices," Reiche said literally. "And as the largest electricity consumer in the EU, we cannot rely solely on our neighbors. 

We need controllable electricity generation within our own country. The coalition agreement mentions up to 20 gigawatts of gas power plants. The tendering process for this must start promptly. We also aim to improve the production conditions for gas domestically." The separation and storage of carbon dioxide – CCS (Carbon Capture and Storage) and CCU (Carbon Capture and Utilization) – should also play a more significant role. 

Coordinating the Expansion of Renewable Energy with Grid Expansion

 Part of the reality check also involves better synchronizing the spatial and temporal expansion of renewable energy with grid expansion. "We will ensure a thorough inventory and then address this issue with high priority," she announced. 

The coalition has also agreed to abolish the Heating Law. The current law leads to procrastination rather than the desired wave of climate protection investments in the existing building stock. "Climate protection requires the acceptance of those who are supposed to invest. We want to use flexible rules, which are oriented towards long-term CO2 reduction, to resolve the investment bottleneck in existing buildings. We will make use of the leeway in implementing the European building directive." 

What the new minister also said in her inauguration speech regarding future energy policy is presented in full by the Solar Server as follows: 

"Both citizens and companies have suffered from the high electricity prices in recent years. That's why we want to stabilize and reduce them. To this end, the coalition agreement, among other things, stipulates the introduction of an industrial electricity price, the reform of the system of network charges, and that reserve power plants should not be used merely to avoid supply shortages. We are aware that this will require some tough negotiations in Brussels. 

On the other hand, we want to encourage companies to sign long-term gas supply contracts with foreign partners and will provide political support for this. Diversifying the countries of supply will be crucial. 

We must make the electricity system more flexible. This means strengthening dynamic electricity tariffs, supporting bidirectional charging, and driving forward the expansion of system-service storage capacities. We will recognize energy storage as being in the overriding public interest." 

More Bioenergy, Geothermal Energy, Hydropower

 "The coalition has also agreed to comprehensively utilize the diversity of renewable energies. Alongside solar and wind energy, this includes bioenergy, geothermal energy, hydropower, and the molecules produced from these energy carriers. Here too, we must keep costs under control. We want to promptly implement the Renewable Energy Directive III, speed up the facilitation of planning, strengthen the investment framework, and at the same time, increase the use of market economy instruments."