Energiewende to stay top issue after elections - German chancellery chief

The Energiewende, Germany’s energy transition, will stay at the top of the agenda for the next government after September’s federal elections, Peter Altmaier, head of the Federal Chancellery, said at utility association BDEW’s Smart Renewables event. An increasing share of flexible renewable energy sources may require adjustments to financing mechanisms and market designs, Altmaier explained. “This is a generational project, so we always have to ask: are we going in the right direction, do we have to make adjustments?” Altmaier defended the decision to reject calls for a capacity market – stand-by payments for conventional power plants – saying that the solution based on the energy only market was cheaper and fostered innovation. Altmaier said that setting a pre-defined corridor for the expansion of renewable sources was necessary to create planning security for all players involved. The next government would have to look at the way the renewables extension was financed as an ever-increasing surcharge paid through the power price might hurt companies that did not enjoy exemptions. Speaking at the same event, BDEW Chairman Stefan Kapferer reiterated his call for an overhaul of the system, especially as other sectors like mobility and heating would increasingly have to shift to renewable energy sources.

Read the CLEW dossier for background on how the government is betting on competition and flexibility with the power market reform.