- The German government will assess electricity demand, supply security, and grid and renewables expansion to guide reforms in its energy transition strategy.
- It plans to cut electricity taxes and grid fees, introduce gas-fired power plants, and hold tenders for 5–10 GW of gas capacity, with key actions expected by year-end.
Germany’s government has launched a system review to comprehensively analyse the country’s future energy needs and supply strategy. The review aims to ensure energy affordability, improve supply security, and support the integration of new gas-fired power plants to stabilise the grid.
During her keynote speech at the BDEW energy industry conference in Berlin, Reiche emphasised the urgency of reassessing Germany’s energy transition. “What has been forgotten or swept under the carpet are the system costs,” she said. “We will subject the energy transition to a quick reality check.”
The move follows public pressure after February’s federal election, during which high energy prices, among the steepest in Europe, became a central issue for voters. These costs have raised concerns about economic competitiveness, especially in Germany’s industrial sector.
For decades, Germany relied on inexpensive Russian gas, but the war in Ukraine disrupted that supply, forcing the country to accelerate its shift to renewable energy. Now, the government is working to lower prices through several initiatives. These include cutting electricity taxes, reducing grid fees, and introducing gas-fired plants to stabilise prices when renewable output dips.
The government will assess expected electricity demand, supply security, and grid and renewable energy expansion status as part of the review. The goal is to determine whether current policies align with the nation’s economic and environmental objectives or if course corrections are needed.
Reiche expects the cabinet to decide on lowering the electricity tax before the summer break, and a complete implementation plan will be in place by the end of the year.
Germany is also discussing with the European Commission the launch of tenders for 5 to 10 gigawatts of gas-fired power plants, with the first auction planned before year-end. These flexible gas plants would act as a backup for intermittent renewable sources, helping to prevent price spikes and grid instability.
Speaking with reporters on the sidelines of the conference, Reiche clarified that the government’s long-term goal is a fair, competitive energy system. “The market should not favour any one technology,” she said. “All clean and efficient solutions must contribute.”
The upcoming analysis will shape key policy decisions as Germany navigates the next phase of its energy transition—balancing climate goals, energy security, and economic competitiveness.