Germany needs to accelerate energy market reforms-Minister
2023.02.20 10:19
Germany needs to accelerate energy market reforms-Minister
By Kristina Sobol
Budrigannews.com – Economy Minister Robert Habeck stated on Monday that Germany will do the majority of the work this year to prepare its power market for a greater reliance on renewable sources by the end of the decade.
As Europe’s largest economy moves away from fossil fuels in accordance with its commitments to combat climate change, Habeck intends to overhaul the market for 550 terawatt hours per year (TWh) as demand rises and production shifts to more intermittent sources.
During a consultation meeting on power market reform, he stated, “We will complete most of the necessary work in 2023.”
By 2030, Berlin wants to generate 80% of its electricity from wind and sun. This goal has become more important since Russia stopped sending fossil fuels to Germany last year.
Habeck stated that the government will prepare tenders for gas-fired power capacity to support swings in green power as more reliable nuclear and coal production is phased out.
He said that a strategy for the tenders will be ready this quarter. He also said that hydrogen, which is made from clean power through electrolysis, will eventually replace gas.
The simultaneous rise in demand for power to power heat pumps and electric cars will present another obstacle.
Habeck said that Germany’s plan could set it apart from other countries in the European Union that are still relying on more stable sources of power.
The minister stated, “Creating alternative baseload will be a specific challenge.” It will be similar, in a way, to teaching an elephant to dance.”
Representatives from the industry stated that Germany should be pragmatic and could benefit from other countries’ experiences.
Samuel Alt of Siemens Energy stated that Britain implemented a so-called capacity market in 2014 to significantly reduce its carbon intensity and attract investors to renewable energy.
Alt stated, “Let’s look at what worked elsewhere to avoid losing time.”
Baywa Renewable Energy’s representative, Daniel Hoelder, said that the tax credit incentives for renewable resources that the US government had proposed were “a very, very interesting option.”
