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Germany to examine energy system in pursuit of lower costs
Published by Global Banking & Finance Review®
Posted on June 4, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 4, 2025
2 min readLast updated: January 23, 2026
Germany plans to analyze its energy system to lower costs and improve supply, focusing on renewable integration and gas generation.
By Riham Alkousaa
BERLIN (Reuters) -Germany's government will carry out an analysis of the country's expected energy demand and efforts to improve supply as it pursues lower costs and integrates more gas generation, Economy Minister Katherina Reiche said on Wednesday.
Energy prices, among the highest in Europe, and their impact on the economy and industrial competitiveness were among the most high-profile voter issues in the February federal election.
Germany for decades relied on cheap Russian gas, but was forced to accelerate its shift to renewable power by the disruption of the Ukraine war.
The new coalition government has promised measures to lower prices, including cutting electricity taxes and grid fees and introducing gas-powered plants to shield consumers from price spikes when intermittent renewable energy production drops.
"What has been forgotten or swept under the carpet are the system costs. That's why we will subject the energy transition to a quick reality check," Reiche said in a keynote speech at a conference hosted by industry group BDEW in Berlin.
She said the government would examine the country's expected electricity demand, security of supply, the status of grid and renewables expansion to determine whether adjustments are needed.
Reiche said she expects cabinet decisions on lowering electricity tax before the summer break and a plan for implementation by the year-end.
Germany is discussing with the European Commission introducing tenders for five to 10 gigawatts of gas power plants, with a view to holding a first auction, also by the end of the year.
Speaking to journalists on the sidelines of the Berlin conference, she said the long-term goal was a fair, competitive energy system that includes a backup to renewable power when that is not available.
She said the market should not favour any one technology, and all clean and efficient solutions should contribute.
(Reporting by Riham Alkousaa, Editing by Rachel More and Barbara Lewis)
Germany's government aims to analyze the country's expected energy demand and supply efforts to lower costs and integrate more gas generation.
The disruption caused by the Ukraine war forced Germany to accelerate its shift from relying on cheap Russian gas to renewable power.
The government plans to cut electricity taxes and grid fees, and introduce gas-powered plants to protect consumers from price spikes.
Cabinet decisions on lowering electricity tax are expected before the summer break, with implementation planned by the end of the year.
The long-term goal is to establish a fair and competitive energy system that includes backup for renewable power when it's not available.
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