Germany’s federal ministry of economic affairs and energy has presented its latest energy transition monitoring report. The report identifies seven key fields of action designed to make the transition more cost-efficient while safeguarding supply security and climate targets.
- Geographic alignment of renewables, hydrogen electrolyzers, and storage to reduce bottlenecks.
- Systematic integration of flexible resources like electrolyzers, heat pumps, and storage into grid systems.
- Needs-based grid planning reflecting demand patterns and adaptation of innovative systems such as offshore wind turbines.
- Accelerated grid expansion via faster permitting and stronger supply chains.
- More efficient support schemes for renewable and hydrogen technologies.
- Capacity mechanisms and hydrogen storage to safeguard supply.
- Digitalization including smart meters and real-time data use.
Minister Reiche’s proposals
Building on the report, economy and energy minister Katherina Reiche has presented 10 proposals for strengthening business and competition. Key measures include expanding renewables, grids, and decentralized flexibility synchronously, implementing a technology-open capacity market, promoting flexibility and digitalization of the electricity system, reviewing and streamlining funding regimes to reduce subsidies, driving hydrogen ramp-up by cutting regulatory complexity, recognizing CCS (carbon capture and storage) and CCU (carbon capture and utilization) as climate technologies and supporting research and innovation to accelerate transition.
Steel industry’s response
The German Steel Federation (WV Stahl) has welcomed the government’s initiative but stressed that decisive corrections are urgently needed to safeguard the industrial base.
Kerstin Maria Rippel, managing director of WV Stahl, emphasized that electricity prices in Germany are far too high by international standards. Without correction, the industrial location will fall behind. She stated that effective relief for energy-intensive industries is essential, while backup capacity is necessary for security of supply, but must not raise industrial power costs further. The hydrogen ramp-up must be accelerated, affordable, and regulated flexibly to support decarbonization, Rippel added.