Latest news with #Reiche
Yahoo
6 days ago
- Business
- Yahoo
Bavaria set to be home to new German gas power plants
Germany's new government is set to build gas plant plants in the southern state of Bavaria, Economy Minister Ketherina Reiche said on Monday. Attending a meeting of the Bavarian Cabinet in the lakeside resort of Gmund am Tegernsee, Reiche said "two-thirds" of the new capacity would be built in southern Germany as part of a "southern bonus." Bavaria will be prioritized in "the tender for the first 20 gigawatts that we have planned in Germany," she added. Chancellor Friedrich Merz's conservative-led administration, which took office last month, is promising to bring down electricity prices for energy-intensive industries by constructing new gas-run plants. The Cabinet is expected to decide on the first measures to relieve businesses by the summer, with a reduction of levies on electricity, grid charges and gas storage. Reiche said high energy costs are leading companies to make new investments in countries where prices are more favourable. "Security of supply, climate protection and affordability must come together again in a balanced triangle," said the minister. Reiche said consultations with the European Commission over the plans are already under way.
DW
24-05-2025
- Business
- DW
Is Germany's new government weakening climate protection? – DW – 05/24/2025
When Katherina Reiche of the center-right Christian Democratic Union (CDU), took over from her predecessor, Robert Habeck of the Green Party, as the new Federal Minister for Economic Affairs and Energy, she had warm words for him. That was surprising. During Germany's recent federal election campaign, Habeck had been flooded with criticism from conservative politicians. The head of the conservative Christian Social Union (CSU), Markus Söder, for example, repeatedly complained about the "worst economics minister of all time." Reiche's view differed. She recalled how Habeck had managed the post-pandemic energy crisis, after Russia began its war of aggression against Ukraine, in the spring of 2022: "I would like to thank you for that almost superhuman achievement," Reiche said. Habeck contributed to "this country getting through this crisis," even with his unpopular policy decisions. The Ministry of Economic Affairs staff responded with prolonged applause, and Habeck was visibly moved. German industry calls for more proactive growth policy To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Abolishing 'Habeck's' law on heating In the meantime, Reiche is working towards amending Habeck's most important law: the "Building Energy Act" (popularly known in Germany as the Heating Law), she wants to dismantle its substance almost entirely. That goal is indeed clearly stated in the new coalition agreement between the CDU, CSU, and the center-left Social Democratic Party (SPD): "We will abolish the Building Energy Act." Habeck, who was also responsible for climate protection, attempted to tackle one of the key weaknesses in German climate policy during his time in government from 2021 to the beginning of May 2025: While the expansion of renewable energies such as solar and wind is progressing, Germans still predominantly heat their homes with climate-damaging natural gas. The Building Energy Act was intended to promote the installation of new, environmentally friendly heat pumps in homes and set end dates for operating old gas heating systems. However, the law caused a great deal of resentment, and critics accused the Greens of interfering in Germans' boiler rooms. Reiche now wants to change the law. On the podcast, Table Today, she said that the law in its current form more or less prescribes just one technology: the heat pump. "There is a de facto operating ban on gas boilers installed before 1991," said the CDU politician. "First of all, we need to abolish this operating ban in order to restore calm to the market." Climate change takes back seat in Germany's 2025 election To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video After initial problems, the installation of heat pumps has recently picked up significantly. In the first three months of this year, sales in Germany rose by 35% year-on-year to 62,000 units. The German Heat Pump Association announced in a press release. The managing director of the organization, Martin Sabel, spoke of "light at the end of the tunnel." The state subsidy of up to 70% of the costs is now "established," the association expects sales of 260,000 heat pumps for the year. Habeck's dream of 500,000 heat pumps per year That demonstrates how bold Habeck's original ideas were. In 2022, he stated that his target was the installation of around 500,000 new heat pumps each year. "The market is gradually gaining momentum because people are realizing that it makes sense to move away from fossil fuels," Sabel said in an interview with Der Spiegel. Reiche also announced that securing the energy supply is now a priority for the government in addition to climate protection. That will include constructing new gas-fired power plants with a total capacity of around 20 gigawatts. Gas is more environmentally friendly than coal, which Germany wants to phase out by 2038 and still supplies around 20% of German electricity. For that reason, the previous government had also supported the construction of gas-fired power plants — albeit not to the extent mentioned by Reiche. Germany's heat pump makers look to expand at home and abroad To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Reiche's plans 'completely oversized' Reiche's gas plans drew the attention of energy expert Claudia Kemfert from the German Institute for Economic Research (DIW). In the Bavarian Media Group's newspapers, Kemfert said the plans are "completely oversized," adding that "Hydropower, making the energy system more flexible and the use of increasingly cost-effective large-scale batteries would also be viable alternatives." According to Martin Kaiser, climate expert for the environmental group Greenpeace, Germany should finally break the fossil fuel chains that tie the country to expensive fossil fuel imports. "Instead of making Germany more independent by accelerating the expansion of renewables, Katherina Reiche wants to steer us into new fossil dependencies," Kaiser said. So, does climate protection no longer play a significant role in the new government? Even if critics suspect this, Germany took a decisive step for climate protection in the coming years even before Friedrich Merz was elected Chancellor: The new government decided on a gigantic investment program for infrastructure of €500 billion ($565 billion). However, Germany's Basic Law had to be amended for this, which is why the CDU, CSU and SPD also needed the votes of the Greens. And they succeeded in ensuring that €100 billion of the €500 billion would be spent on climate protection. Some observers spoke of the Greens' greatest success at the end of their time in government. High expectations of the new environment minister Less at the center of the debate is the new Environment Minister Carsten Schneider, who is now also responsible for international climate protection in the new government. Martin Kaiser has clear expectations of the SPD politician. "He rightly sees German climate foreign policy as an essential part of security policy. Schneider wants to, and must save global climate protection in foreign policy — despite Trump." Minister Schneider must now draw up a climate protection program by the end of the year, which will oblige his colleagues in the cabinet to take immediate action." However, it remains to be seen whether Schneider will get the chance to do that within the cabinet against the strong force of Economics Minister Reiche. This article was originally written in German. While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
Yahoo
23-05-2025
- Business
- Yahoo
Berlin divided over nuclear energy assessment in EU climate policy
A rift appears to be forming within Germany's new coalition government over the question of whether nuclear energy should be deemed sustainable at EU level. "Discussions are under way at European level with our European partners, with the European Commission and also within the federal government," said deputy government spokesman Sebastian Hille in Berlin on Friday. His comments come a day after German Economy Minister Katherina Reiche defended a major policy reversal that saw Berlin drop its opposition to nuclear energy being deemed sustainable. In the European Union's taxonomy for sustainable economic activities, technologies that emit no carbon dioxide (CO2) or are low in CO2 should be prioritized, Reiche noted. The taxonomy lists areas in which investments can be made to combat climate change. Certain investments in gas or nuclear power plants are categorized as climate-friendly. But on Friday, German Environment Minister Carsten Schneider said Germany continues to oppose this assessment, as it had done under the previous centre-left administration, amid criticism that the use of nuclear energy produces radioactive waste and should not be treated on par with renewable sources. Schneider, a member of the Social Democratic Party (SPD), told dpa that "comments made by individual members of the federal government suggesting that there is a new openness here are private opinions." "The federal government has not taken a position on this issue and, with the SPD, will not do so in the future," he added. A paper jointly published earlier this month by Germany's new conservative-led government and the French government, a staunch supporter of nuclear power, states that energy policy is to be based on climate neutrality, competitiveness and sovereignty and that all low-emission energies, including nuclear, are to be treated equally. While Reiche stressed the need to be open to technologies, Schneider insisted that the country had exited nuclear power for good reason. "Nuclear power is significantly more expensive than renewable alternatives, which Germany has already made great strides in developing," he said. "Nuclear power entails incalculable risks – in terms of accidents and the spread of radioactive material. I cannot seriously describe such a technology as sustainable," he added. Schneider went on to say that Germany opposes EU funding for nuclear facilities. "This also applies to attempts to equate nuclear power with sustainable electricity generation from renewable energies."
Euronews
23-05-2025
- Business
- Euronews
Does Germany need to return to nuclear power?
Germany was once a world market leader. Today, the industrialised nation is considered the "sick man of Europe". The country is in recession for the third year in a row. Economic experts predict zero growth for this year. The decline is dramatic in the figures. Last year, almost 200,000 companies shut their doors, according to a study by Creditreform. This is the highest figure since 2011. The figures will continue to plummet in 2025. A new high in insolvencies was reported in April. According to the Leibniz Institute, 1626 company insolvencies were registered - 21% more than in April 2024. This even exceeds the figures from the 2008 financial crisis. The high electricity prices in particular are causing problems for industry. Some steel giants are now having to temporarily shut down their production on a single day to protect their company from financial damage. Meanwhile, other companies are relocating their production to Eastern Europe - or even to China. Entire industries are under threat. Foremost among them is the automotive industry: VW, Mercedes and BMW are cutting thousands of jobs. "Made in Germany" has simply become too expensive. The well-known economist Daniel Stelter warned in an interview with Euronews that: "We now only have 24 months to save the energy-intensive industries." The losses suffered by industrial companies to date can no longer be reversed, he said. Economics Minister Katherina Reiche (CDU) has correctly recognised Germany's energy cost problem. She is in favour of energy security and lower electricity prices. This is why she wants to subsidise industrial electricity, for example. However, the EU is threatening not to go along with this. Reiche also wants new gas-fired power plants as a solution to the problem - but the price of gas is also higher than ever. Does the minister have the right recipe to save the German economy? Daniel Stelter explains that Minister Reiche is taking the right step. "When the wind isn't blowing and the sun isn't shining, we need a secure supply. Now that we have switched off nuclear power plants and we also want to switch off coal, the only thing left is gas-fired power plants." Only with renewable energies, "it just won't work." However, Reiche's measures have not yet been enough to revive the economy so that Germany can remain an industrial nation. "Anyone who believes that renewable energy in combination with gas-fired power plants will lead to cheap electricity is living in a dream world," Stelter told Euronews. "Many people only ever look at the costs of solar cells and wind turbines. Only when the wind is blowing and the sun is shining is it favourable. In reality, we have to include the system costs such as storage and batteries - then renewable energies are the most expensive!" This is why "Reiche's policy - as it stands today - is actually the continuation of Robert Habeck's policy" and is not suitable for "supplying an industrialised country with energy sustainably and cheaply." Instead of gas-fired power plants, nuclear power plants would be the better solution, says Stelter. "If you ask me personally for my opinion, I would of course not have phased out nuclear power in the same way. And I would now do everything in my power to reverse the nuclear phase-out by reactivating the old nuclear power plants." Energy expert Björn Peters takes an even more critical view. He has just launched his new book on the market entitled "An End to the Energy Transition." In it, he argues that the economy should dare to be more ecologically realistic. "You can't reduce the price of electricity with gas-fired power plants alone. They are very expensive to operate. Gas is expensive. Then there are the CO2 costs on top. That would mean that in the long term you would have producer prices of between 15 and 20 cents per kilowatt hour," says Peters, who says this is too expensive. "That would make us uncompetitive." Instead, the supply must be expanded quickly. "This consists of the decommissioning of nuclear power plants, domestic production of natural gas and CCS, which is CO2 capture from coal-fired power plants. We have enough coal for 200 years. It would be in the interests of national security to continue using coal, but with the appropriate filters." Nuclear power plants such as Brokdorf and Emsland could be reactivated by 2026. There are also six other nuclear power plants that could be recalled. The process could continue into the 2030s. The consequences of the previous "bad energy policy should not be subsidised down", warns Peters. "Of course that won't work." Stelters also emphasises that: "Politicians are focusing on solving the industrial crisis through subsidies - in other words, less taxes and state subsidies instead. That doesn't make sense. The principle is that the greater the supply, the better." Nevertheless, the physicist is optimistic about his expectations of the new Economics Minister. Reiche wants to "seriously take stock" of the economy, he said. "We have spoken to individual government representatives in the last few days. And they at least seem to be reflecting on the nuclear phase-out."
Yahoo
22-05-2025
- Business
- Yahoo
German minister defends shift on nuclear energy in EU climate policy
German Economy Minister Katherina Reiche on Thursday defended a major policy reversal that saw Berlin drop its opposition to nuclear energy being deemed sustainable. "Every ton of CO2 we can save is a good thing. We have to be open to technology here," Reiche told journalists in Brussels. In the European Union's taxonomy for sustainable economic activities, technologies that emit no carbon-dioxide (CO2) or are low in CO2 should be prioritized, Reiche noted. The taxonomy lists areas in which investments can be made to combat climate change. Certain investments in gas or nuclear power plants are categorized as climate-friendly. This has been the subject of fierce opposition by Germany's previous government amid criticism that the use of nuclear energy produces radioactive waste and should not treated on par with renewable sources. The new leadership in Berlin under conservative Chancellor Friedrich Merz has embraced a different stance - one that now puts it in line with France. A paper jointly published with French government, a staunch supporter of nuclear power, states that energy policy is to be based on climate neutrality, competitiveness and sovereignty and that all low-emission energies, including nuclear, are to be treated equally. Two years after the last nuclear power plants were shut down, Germany has no plans to return to the energy source, Reiche said. "We respect the fact that member states are pursuing their own engineering path in the energy mix. We are taking a different path to France here," she said. France currently operates 18 nuclear power plants with a total of 56 reactors. A 57th reactor is currently under construction.
