Cutting Subsidies: Wealthy Individuals Lowering Energy Expenses
Federal Minister of Economics, Katharina Reiche, has unveiled the long-awaited Energy Transition Monitoring report. The document outlines a clear commitment to further expanding renewable energies, aiming to transition electricity generation to 80 percent renewable sources by 2030.
The report, carried out externally by the scientific institutes BET and EWI on behalf of the Federal Ministry of Economics and Energy, lists key measures such as planning realism, promoting renewable energy in a market- and system-compatible manner, expanding decentralized flexibility, expanding uniform and liquid energy markets, and systematically reducing subsidies.
However, the publication of the Energy Transition Monitoring has sparked immediate protests and criticisms. Critics, including Sascha Müller-Kraenner, Federal Managing Director of the German Environmental Aid (DUH), accuse Reiche of ignoring scientific recommendations and favoring the gas lobby. Müller-Kraenner also criticizes the Minister's stance on 'planning realism' as a transition brake for renewables and a potential backdoor for new fossil dependencies.
Fridays For Future activist Carla Reemtsma and the SPD faction, including Armand Zorn, have also voiced their concerns, accusing Reiche of political sabotage by slowing renewable energy growth against expert advice.
Despite the criticisms, there are enthusiastic voices in support of the report. Dr. Simone Peter, President of the German Renewable Energies Federation (BEE), called the report intensive and substantial, recognizing a clear commitment of the Minister to the climate goals and no realignment of energy policy. Andreas Löschel from Ruhr University Bochum sees the plan positively, emphasizing the Minister's commitment to digitalizing the power system.
The BEE also welcomes the Minister's emphasis on the need for renewable energy to be developed in a system-compatible manner and her reference to the need for compatibility and standardization in grid expansion. However, the BEE expresses concerns about the dilution of the term 'green hydrogen' as proposed by the Minister.
The report also contains a clear yes to hydrogen, but the Minister wants to distance herself from the strict definition of 'green hydrogen' at EU level and treat carbon-neutral hydrogen equally. The current electrolyzer expansion targets would be replaced by flexible targets that orientate themselves to demand in the hydrogen sector.
The energy transition requires reliability, supply security, affordability, and cost-effectiveness for the economic location. Reiche advises against a German pioneering role in the energy transition, emphasizing the need for a balanced approach that ensures the affordability and reliability of energy for consumers.
The Energy Transition Monitoring is available on the website of the Federal Ministry of Economics and Energy. Dr. Simone Peter states that the renewable energy sector is ready to enter the discourse on hydrogen.
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