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29 April 2025

Henning von Stechow on the coalition agreement

The new coalition agreement between the SPD and CDU signals important changes for the energy sector. Our CEO, Henning von Stechow, provides an assessment of what the plans mean for the energy transition – and where the opportunities and risks lie.

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The new federal government formed by the SPD and CDU has agreed on a coalition agreement which, from the perspective of the energy sector, presents both positives and negatives. The Ministry for Economic Affairs and Energy will in future be led by Katherina Reiche.

About her: Katherina Reiche has a long-standing career in the energy sector – both as a Member of the Bundestag, as a State Secretary in various ministries, as Chair of the Association of Local Utilities (VKU), and most recently also within the E.ON Group. She is therefore very familiar with the industry's issues. There has also been positive feedback from associations, such as the German Renewable Energy Federation (BEE). However, her first statement – that “new approaches for the energy transition” are needed – also raises curiosity about what exactly is meant by this.

Henning von Stechow

We view the following aspects of the coalition agreement positively in particular:

The clear commitment to the 2045 climate targets. Especially within the CDU, there have been strong climate-sceptical voices in the past; in this respect, this decision is an important signal.

The planned relief in electricity costs. This could help strengthen public acceptance of the energy transition.

The fundamental commitment to the continued expansion of renewable energies.

The announcement to cap lease rates for land used for renewable energy projects. This could curb excessive lease demands and facilitate new projects.

The planned tenders for flexibly controllable power plants, particularly those capable of using hydrogen. This highlights that the ramp-up of hydrogen continues to be a central objective, which is essential for the future CO₂-free energy supply.

The numerous measures to accelerate planning and approval procedures, as well as the announced digitalisation and reduction of bureaucracy. There is an urgent need for action, particularly when it comes to approvals for wind power projects.

On the other hand, we view critically:

Questioning the 2% land area target for the expansion of onshore wind energy. Every additional green kilowatt hour will be urgently needed in the coming years. Any limitation in this regard could significantly slow down progress.

The idea of using old, CO₂-intensive reserve power plants to lower electricity prices would not only be counterproductive from a climate policy perspective, but could also distort price developments in the markets and significantly jeopardise long-term investment incentives, such as through PPA models.

It also remains unclear how exactly the regulatory framework for the urgently needed further expansion of the power grids is to be designed. This is precisely where a key to a successful energy transition lies, as only a well-developed grid can efficiently integrate the new decentralised feed-ins. However, the coalition agreement remains vague on this point.

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Conclusion

There are a number of approaches in the coalition agreement that give cause for hope, and others that carry significant risks. Overall, it remains to be seen how the new federal government will translate these points into concrete policy. The past few years have been successful for the renewable energy sector as a whole – we hope this momentum is not lost and that we can build on the positive developments.

Regardless of this, we remain committed to our goals and continue to work on expanding renewable energy. You can find out how we are doing this and which projects we are currently working on here:

Project development for renewable energy

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