If you want to trigger more investment in Germany, you have to create reliable framework conditions. What is happening in energy policy Unfortunately, the opposite is currently the case. A commentary by GESI CEO Walter Raizner.
Pullach, February 25. Four current examples show that energy policy is currently heading or threatening to head in the wrong direction. In the end, commercial and private electricity customers could be the ones who are left holding the bag for the energy transition – and those investors and entrepreneurs who have not called for subsidies. In detail:
1️⃣ The Federal Network Agency has just called into question the grid fee exemption for battery storage systems that are connected to the grid by August 4, 2029. That would be a massive breach of trust and further damage to Germany as a business location.
2️⃣ The Bundestag recently passed a law granting privileges to large batteries under building law, only to massively restrict them two weeks later with the next law. Such a disoriented hiccup is unprecedented in terms of economic policy – at least in Germany to date.
3️⃣ The redispatch proviso envisaged in the grid package would place an additional burden on producers of renewable energies, while operators of gas-fired power plants would receive high subsidies. It would also reduce incentives to eliminate grid bottlenecks. This is completely the wrong approach because it cures symptoms instead of eliminating causes.
4️⃣ According to a report in “Die Welt”, the Federal Ministry of Economics does not even dare to make an approximate estimate of how expensive the new gas-fired power plants will be for electricity customers. The only thing that is clear is that there will be a levy.
Established players defend their sinecures
With all due respect for the complexity of the energy transition and democratic processes: Trust cannot be created in this way. On the contrary, we see the danger that the German government will stifle billions in private investment that would benefit the economy as a whole.
The underlying problem seems to me to be that the Ministry of Economic Affairs is taking considerable account of the interests of established companies that want to operate gas-fired power plants without risk and gain even more time for – overdue – investments in the electricity grid.
A position paper from RWE, which was reported in the Handelsblatt newspaper a few days ago, shows how established companies are currently trying to defend their sinecures. According to the paper, the company appears to want to “prevent battery storage systems from even being considered in the first round” in view of the upcoming tenders.
Instead of protecting individual interests and putting obstacles in the way of new players, the coalition should focus on market economy principles and pave the way for private investment – through planning security for grid fees, faster grid connection procedures and the limitation of subsidies that distort competition.
It should be clear to everyone involved that either-or debates are just as useless as demands that are based solely on their own economic interests. For a successful energy transition, we need both – batteries and gas-fired power plants. However, fair competition is essential so that both technologies can play to their strengths.
We do not shy away from this competition.