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Tracking progress and wealth nations' role in energy transformation

Economic Minister Katharina Reiche encountered a wave of criticism after the energy transition monitoring report was released, with her policies being the target of the commentary.

Tracking the Energy Transition Progress in Wealthy Nations
Tracking the Energy Transition Progress in Wealthy Nations

Tracking progress and wealth nations' role in energy transformation

In a series of statements, industry leaders and organisations have called for decisive action to speed up Germany's energy transition, emphasising the need for cost-efficiency, regulatory streamlining, and system integration improvements.

Stefan Thimm, CEO of the German Offshore Wind Energy Association (BWO), has urged the introduction of yield targets for offshore wind farms, better area planning, and the avoidance of shading effects to reduce electricity generation costs by up to 30%. Thimm also advocated for the implementation of Contracts for Difference (CfDs) to ensure a stable and efficient energy transition.

Sandra Rostek, head of the "Berlin Office for Bioenergy" (HBB), believes that up to 12 GW of installed electrical capacity could be achieved by 2030 by making the existing biogas plant fleet more flexible. Rostek's focus is on avoiding the need to access additional biomass, which could potentially put pressure on natural resources.

The Wuppertal Institute, in a statement, warned against slowing down the expansion of renewable energies, stating that such a move would have negative consequences for climate protection, industrial competitiveness, and resilience.

Kerstin Maria Rippel, CEO of the German Steel Federation, called for the implementation of the findings of the monitoring report as quickly as possible, urging effective relief for energy-intensive industries, sufficient backup capacity, a capacity mechanism to prevent further increases in electricity costs for industry, and the ramp-up of hydrogen to finally gain momentum.

Andreas Feicht, CEO of KoelnRheinEnergie AG, emphasised the need for consistent bureaucratic reduction to achieve more cost efficiency and stable electricity prices.

Kerstin Andreae, Chair of the BDEW Management Board, saw the monitoring report as a convincing start that reflects much of what the industry has already prepared. Andreae highlighted the expansion of renewables better aligned with the networks, the addition of gas power plants that can be converted to H2, the design of a technology-open capacity market by 2027, and the ramp-up of supportive hydrogen regulation as key areas of focus.

Timm Kehler, CEO of the Association for the Gas and Hydrogen Industry, identified three short-term action priorities: the start of the tendering process for hydrogen-capable gas power plants, the technically feasible recognition of low-carbon hydrogen in the framework of RED III, and the enabling of access to the flexibility market for bioenergy.

Sven Becker, spokesperson for the management of Trianel GmbH, supported the energy transition monitoring report and emphasised the need for better interlinking of the expansion of renewables with the networks, creating more flexibility options, accelerating the hydrogen ramp-up, building H2-ready power plants as the backbone of supply, and establishing a reliable capacity market design.

Michael Vassiliadis, chairman of the energy and chemical trade union IGBCE, expressed relief that German energy policy has arrived in reality and called for quick action on concrete steps such as faster addition of secured performance, cost relief on energy bills for industry and households, and pragmatism in climate policy.

Key individuals and organisations, including German Economy Minister Katherina Reiche, the Association of German Engineers (VDI), the industrial trade union IGBCE and industry associations BDI and VCI, SPD representatives like Environment Minister Carsten Schneider and energy spokesperson Nina Scheer, and the renewable energy industry association BEE, have proposed specific measures to further the development of the energy transition in Germany. These measures include system integration improvements such as flexibilisation and digitalisation, as well as institutional strategies for carbon capture and storage infrastructure.

The German federal government has approved draft laws to speed up renewable energy expansion and enable carbon capture and storage infrastructure, reflecting its commitment to the further development of the energy transition in Germany.

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