Fresh Momentum for Renewables: What Chancellor Merz is Planning – and What It Means for Your Business
Dear readers,
With the somewhat bumpy start of Chancellor Friedrich Merz and the new CDU/CSU-SPD coalition, a new chapter begins in Germany’s energy and climate policy. The new government takes office in turbulent times – from geopolitical tensions to a fragile global economy and mounting climate pressure. Against this backdrop, affordable energy prices, efficient grid expansion, and targeted decarbonization are becoming key challenges for businesses in the coming months. The coalition aims to stimulate the economy and reduce bureaucracy to relieve pressure on industry and SMEs. Discover what measures are planned and what they mean for your company.
Electricity Becomes More Affordable – for Households and Industry
The coalition promises noticeable relief: by lowering electricity tax to the EU minimum, reducing grid fees, and introducing expanded industrial electricity pricing schemes, households and businesses are expected to save at least five cents per kilowatt-hour in the long term. In addition, the gas storage levy will be abolished, which will significantly reduce energy costs for industry and enable new investments.
Supply Security Through New Gas-Fired Power Plants
Ensuring a secure energy supply remains a top priority. By 2030, up to 20 gigawatts of new gas-fired capacity are planned to prevent grid bottlenecks. A return to nuclear energy is ruled out. The government is also systematically reviewing investment needs in grid and power plant infrastructure. Funding programs for hydrogen and carbon capture (CCS/CCU) aim to support industry in becoming more climate-friendly – with tax incentives included.
Renewables: Structured Growth and System Integration
Germany’s 2045 climate neutrality target remains intact. The government continues to support the expansion of renewable energy, but with a stronger focus on system integration and cost efficiency. Approval procedures for wind and solar projects will be streamlined, while the full potential of other sources – from bioenergy and geothermal to high-altitude wind power – will be better utilized. Innovative technologies like wastewater heat and heat recovery are gaining attention. At the same time, digital grids, smart storage, and dynamic electricity tariffs will enhance grid stability and optimize consumption. Data centers, energy storage systems, and large-scale generators are to be strategically integrated into the grid. A “green gas quota” will be introduced as a market-oriented instrument to drive gas sector decarbonization.
Buildings and Heating: A Shift in the Heat Sector
The existing Building Energy Act (GEG), known as the “Heating Act,” will be replaced by legislation that is more technology-neutral and user-friendly. Chancellor Merz favors market-based instruments: high prices for fossil fuels are expected to drive the transition to climate-friendly heating systems. The coalition also plans to better align building regulations with municipal heat planning.
Goodbye to Subsidies – Hello to Market Incentives
In contrast to the previous Scholz administration, which emphasized state subsidies and binding climate targets, Merz adopts a more liberal approach: fewer subsidies, instead long-term tax relief and increased individual responsibility. While the previous coalition introduced extensive programs for energy efficiency and modernization, the new focus is on market mechanisms, initiative, flexibility, and technological sovereignty.
Industry in Transition: Efficiency Becomes Key
For industry and SMEs, the new framework means lower costs – but also higher demands in energy management. Electricity pricing will become more volatile, and fixed supply contracts less attractive. Those seeking to benefit from low-cost electricity must be able to manage consumption and loads flexibly. At the same time, legal efficiency obligations remain: under the Energy Efficiency Act, large companies must systematically monitor and improve their total energy consumption.
Detect Grid Issues Early – Reduce Energy Costs Effectively
With this shift in energy policy, your operational requirements increase: volatile electricity prices, growing input from renewables, and new efficiency regulations demand greater control and responsiveness in grid operations. This is where KBR comes in.
Our 360° concept helps you respond effectively:
Smart load management automatically shifts peak loads – so you use electricity when it’s cheapest
Energy data management complies with EnEfG and ISO 50001 – secure and efficient
Power quality monitoring continuously checks voltage quality – enabling early detection of faults or fluctuations and preventing costly downtimes
Grid analyzers provide real-time precision data – ideal for immediate grid condition monitoring
Harmonic filters effectively reduce distortions – ensuring smooth and long-lasting machine operation
Reactive power compensation cuts unnecessary energy use – reducing grid fees directly
The KBR 360° energy management concept brings all these components together in a seamless system – for greater efficiency, supply security, and transparency in your operations.
Conclusion: Seize Opportunities, Tackle Uncertainty Proactively
The Merz administration promises relief for industry and SMEs while continuing the energy transition. Companies will benefit from lower levies and greater flexibility – but also face rising expectations in terms of responsiveness and efficiency. The actual implementation and funding of these ambitious plans remain to be seen. That makes it all the more important to act now: invest in future-proof energy monitoring, smart control, and stable grid quality. With KBR’s modular solutions, you can take control of the transition. We are here to support you – from analysis to implementation.
Yours,
Jonas Klaus
Technical Editor
KBR GmbH
