Germany's Federal Ministry for Economic Affairs and Energy has released a monitoring report on the energy transition, focusing on reliability, security of supply, affordability and cost-bearing capacity of the energy system to maintain competitiveness.
The Ministry has proposed ten key measures, including a review of the subsidy regime, which would replace fixed feed-in tariffs with contracts for difference (CfD) and would require new plants to sell their power generation directly on the market. Germany also aims at adjusting expansion paths for renewable energies and grid infrastructures to realistic power demand scenarios, which may lower offshore wind capacity and HVDC grid connection targets through 2045.
In addition, the Ministry aims to quickly implement a technology-open capacity market by 2027, prioritising tenders for flexible base-load power plants (especially hydrogen-ready gas-fired power plants); the first tenders for new gas-fired power plants are expected by the end of 2025. The Ministry will seek to promote hydrogen ramp-up, while the current expansion targets for electrolysers will be replaced by flexible targets oriented towards specific projects on the demand side. As well, the CO2 Storage and Transport Act will be amended to accelerate the decarbonisation of industrial processes and power plants.
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