Germany’s snap federal election this Sunday is set to bring a shift in the country’s energy landscape, with the centre-right CDU/CSU alliance, led by Friedrich Merz, on track to win. The CDU/CSU advocates for a technology-neutral, market-based approach to the energy transition, prioritizing carbon pricing and emissions trading over direct subsidies.
In contrast, the SPD pushes for greater state intervention and subsidies to accelerate electrification, particularly through heat pumps, district heating, and renewables deployment. The AfD, meanwhile, opposes current climate policies and advocates for a return to fossil fuel reliance ahead of nuclear rollout.
The lead-up to Germany’s snap election saw the passage of some key energy laws, including reforms to improve electricity system flexibility and support for CHP and biogas plants. However, several critical pieces of legislation remain unresolved, such as:
- Federal Building code (BauGB) amendment: streamlining of regulations to speed up roll out of key infrastructure
- Power Plant Safety Act: Tenders to support deployment of gas plant and LDES
- Energy Industry Act (EnWG) amendment: Pending laws focussing on grid expansion and RES integration
Looking ahead, a CDU/SPD coalition appears a plausible outcome, suggesting that renewables roll-out and electrification efforts in DE will continue. However, with the CDU/CSU favouring market-based mechanisms over direct state intervention, the pace of these developments may slow due to reduced regulatory support and greater reliance on market dynamics.