Blog: Focus On Regulation | 07 February 2018

Energy section of Germanys coalition agreement More renewable energy

Mrs Merkel’s CDU-CSU conservative bloc and the centre-left SPD released their coalition agreement to the public on the 7 February 2018 – in its energy section: a clear commitment for the further expansion of renewable energy.

1. Renewable Energy
The plan to expand renewable energies is preceded by the adaptation of the country’s green energy target. By 2030, 65% of the electricity is to come from renewable energies. With this significant increase to the current target, the coalition parties are clarifying that a possible revival of the Grand Coalition will further focus on the expansion of renewable energies. This goal is to be achieved by means of two extraordinary invitations to tender in the years 2019 and 2020, in which a total of 8,000 MW of onshore wind energy and photovoltaics — half of which will be added in each case — are to be built up. In addition, it can be assumed that offshore energy will contribute to this goal and that the existing caps will be raised. Regional allocation is to be given greater consideration in the implementation of the expansion. It is foreseen that a minimum share of the additional capacity must be put out to tender in southern Germany. In addition, parallel to a Federal Council’s initiative, future participation in invitations to tender should always be conditional on approval under the Federal Immission Control Act, which would at least limit the privileges of the so called Bürgerwindparks [wind farms with participation of the local citizens]. For offshore wind energy a national test field is to be created, to research the further potential for the energy transition.

2. Grid Development
Another focus of the energy section of the coalition agreement is on the electricity grid. Thus, the expansion of renewable energies is being made subject to the precondition of the “absorption capacity of the corresponding grids”. In order to achieve this, various measures are planned for the modernisation and expansion of the power grid: Amendments to the grid expansion acceleration law, expansion of underground cabling, drafting of a ordinance for nationwide transmission grid fees and the creation of “economic incentives for the optimisation of networks” as well as a reorganisation of grid fees. The planned measures also include the use of new technologies and increased digitisation. 

3. Tenant Electricity, Battery Cell Production, CHP und Energy Research

• The agreement also addresses the optimisation of tenant electricity regulations in order to enable sustainable tenant electricity models. In addition, the local communities are to be more involved in the value creation of renewable energy plants.
• The coalition partners want to “further develop and comprehensively modernise cogeneration, so that it has a future within the course of the energy transition”.
• In addition, Germany is set to re-establish itself as a location for battery cell production. To this end, the establishment of a Fraunhofer Institute for energy storage technologies is planned. Furthermore, it is intended to allow energy storage facilities to provide several services at the same time, e.g. to participate in balancing energy market and to provide tenant electricity. 
• Energy research is to be increasingly focused on the energy transition. In particular, Power to Gas / Power to Liquid are highlighted as pillars to be promoted.