Background on Katherina Reiche and Her Role
Katherina Reiche, the German Minister for Economy and Energy, recently announced a long-awaited report commissioned by her ministry. This report outlines measures that, according to Reiche, would lessen the burden of the green transition on Europe’s slowest-growing economy.
Reiche’s Pragmatic Approach
Reiche, representing the center-right CDU party under Chancellor Friedrich Merz’s leadership, emphasized the need for a more pragmatic and realistic energy transition. She stated that policy decisions should avoid misguided investments and excessive regulation, focusing instead on market-driven solutions.
Renewable Energy Subsidies Under Scrutiny
A significant focus of the report is on renewable energy subsidies, which Reiche believes should be “periodically reviewed to assess their economic benefits and reduced to the absolutely necessary level.”
The report, developed by consulting firm BET and research institute EWI, highlights that renewable energy sources sometimes produce more electricity than needed but rarely enough during periods of low sunlight and wind.
To address this issue, the report suggests filling the gap with fossil fuels and specifically calls for the abolition of a subsidy guaranteeing fixed payments for solar parks.
Contrast with Previous Coalition
This proposed change marks a shift from the previous German coalition, where the Green Party led the Ministry of Economy and renewable energy subsidies were a key tool for accelerating the green transition.
Commitment to Renewable Energy Targets
Despite the proposed cuts, Reiche reaffirmed Germany’s commitment to increasing the proportion of renewable energy consumption to 80% by 2030.
She recommended reducing excessive regulation and always considering costs when planning future expansions of renewable energy sources.
Key Questions and Answers
- Who is Katherina Reiche? Katherina Reiche is the German Minister for Economy and Energy, representing the center-right CDU party.
- What changes are proposed regarding renewable energy subsidies? The report suggests periodically reviewing the economic benefits of renewable energy subsidies and reducing them to the minimum necessary level. It also calls for abolishing a subsidy guaranteeing fixed payments for solar parks.
- How does this proposal contrast with the previous coalition’s approach? The previous coalition, led by the Green Party, heavily relied on renewable energy subsidies to accelerate the green transition. This new proposal marks a shift away from that approach.
- What is Germany’s renewable energy consumption target? The German government aims to increase the proportion of renewable energy consumed in the country to 80% by 2030.
