Finance minister warns slowing renewables expansion would “damage Germany”

Germany’s finance minister and vice chancellor, Lars Klingbeil, has emphasised the importance of continued renewables expansion in the country, news agency dpa reported in an article published by newspaper Tagesspiegel. At a meeting of the International Monetary Fund (IMF) and the World Bank in Washington, the Social Democrat (SPD) minister said that this would have to be a key lesson from the Iran war, which triggered a shock on global fossil fuel markets. 

“Those who want to slow down the expansion of renewables ultimately damage Germany,” Klingbeil said, pointing to commitments in the coalition treaty between his party and the conservative CDU/CSU alliance of chancellor Friedrich Merz in which the parties agreed to continue the rollout of solar power, wind and other renewable energy sources. 

The vice chancellor’s comments came amid a raft of criticism of CDU economy minister Katherina Reiche’s plans to axe support for some renewable energy installations and to change rules on grid connections for new projects. The renewables industry and civil society groups have warned that Reiche’s plans could slow the energy transition. Reiche has argued that she aims to bring down energy system costs by aligning the rollout of renewables with the pace of grid expansion and by removing support for technologies she considers already mature. 

According to business daily Handelsblatt, Klingbeil’s ministry is temporarily blocking several legislative proposals from the economy ministry before they can be agreed by the full cabinet, including a Renewable Energy Act (EEG) reform and a grid package. Handelsblatt said that Klingbeil’s fellow SPD member, environment minister Carsten Schneider, also rejected the plans tabled by Reiche. However, Klingbeil said his ministry's actions are a regular procedure and do not reflect an unusual degree of dissent within the government.