MUNICH / HANNOVER In light of today’s meeting of the State Ministers of Energy in Hannover, Minister of Economic Affairs Hubert Aiwanger is presenting a 10-point energy policy plan. Aiwanger stated, „Germany is heading towards a power and supply gap with open eyes. The federal government is missing too many opportunities to get the current energy crisis under control. We now need targeted federal measures to prevent the energy crisis from becoming an economic and societal crisis.“ Specifically, Aiwanger is calling on the federal government and the European Union to implement the following package of measures:
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The package in detail:
1. Utilize biogas potential
Aiwanger: „The planned easing of the maximum capacity for biogas plants and the requirements for the manure content are good but do not go far enough. The changes to the maximum capacity must apply to all biomass and also to biomethane. They generate electricity, heat, and gas, which we urgently need next winter. Additionally, the rigid requirements for a digestion period of 150 days in a gas-tight system must be abolished, regardless of the input material or mixture. To increase electricity and heat generation, the approval rules in the Federal Immission Control Act must be addressed. Short-term necessary changes to existing plants, such as changes in substrate use, should only require a change notification. Plant operators need sufficient security to act accordingly.“
2. Enable more photovoltaic electricity generation and local value creation
Aiwanger: „Germany must finally ignite the photovoltaic turbo. For agri-PV, we need a country-opening clause for a planning privilege according to § 35 paragraph 1 BauGB and a separate auction segment in the EEG auctions. We must not stand in our own way. Therefore, the low subsidy rates and strict funding requirements for parking lot PV and floating PV must end to initiate market growth.“ To strengthen local acceptance, Aiwanger advocates doubling municipal participation from 0.2 to 0.4 ct/kWh and introducing uniform national regulations for direct citizen participation. Regarding rooftop PV systems, Aiwanger calls for the prompt implementation of the tax simplifications announced by the Federal Ministry of Finance and further adjustments, such as for commercial systems. The federal government should urgently introduce the PV storage program, which has proven successful in Bavaria, at the national level, with which 100,000 storage systems and rooftop systems were initiated in Bavaria.
3. Improve security of supply through nuclear power, create planning security for the extension of operating times
Aiwanger: „The ‚emergency reserve‘ is not a solution and unsettles citizens and companies. Energy customers, operators, and employees of the nuclear power plants currently on the grid need to know where they stand. In the current situation, an immediate amendment to the Atomic Energy Act for the extension of operating times is the only sensible solution. The ordering of new fuel rods is urgently required, given a delivery time of about 12 months, to ensure the power supply in winter 2023/24.“
4. Enable investments in secured capacity and storage
In addition to expanding renewables, Aiwanger also calls for the development of secured capacity and power storage for secure, weather-independent power supply even in critical hours. Aiwanger: „The abandonment of the bridging technology natural gas requires the development of diversified and flexible power plant capacities, ready for use at any hour of the year. Existing power plants, for example, must be prepared for the future use of hydrogen. With the erratic course of Berlin’s energy policy, it is no wonder that potential investors are currently deterred. We are also dependent on the expansion of storage capacities. Pumped storage plants can play the main role here. The framework conditions must be improved so that they become profitable and can be implemented.“
5. Enable and financially support fuel-switching for companies
Aiwanger once again emphasizes that companies must be able to switch from gas to other energy sources quickly, securely, and profitably, where technically possible. Any cost increases must be subsidized by the federal government. The necessary adjustments in emission control law must finally be addressed by the federal government. Aiwanger: „The formulation aid for a corresponding draft law addresses many issues from our Federal Council initiative. It is now important that the law is passed as quickly as possible. Crucial and safety-relevant for the approval of LPG liquid gas tanks or heating oil tanks is the technical examination. What worked for the construction of LNG terminals must be applied to other procedures by the federal government. Financial support for the energy switch is also urgently needed when considering the follow-up costs if it is not done.“
6. Intensify the expansion of hydrogen filling stations
The federal government must support the nationwide expansion of hydrogen filling stations for cars and commercial vehicles as well as electrolyzers through continuous funding and increase existing resources for this purpose. Aiwanger: „With the ramp-up of the hydrogen economy, we are also advancing the decarbonization of the transport sector. But this only works with a nationwide available infrastructure. Germany is still miles away from this. In Bavaria, we have already addressed this problem with our funding program for hydrogen filling stations for commercial vehicles; the federal government must support further steps for filling stations and electrolyzers more targetedly.“
7. Expand the nationwide hydrogen infrastructure
The plans for the construction of a hydrogen pipeline network under federal funding will only focus on the north and west of Germany, as shown by the current hydrogen report of the German transmission network operators. Aiwanger: „Bavaria and the entire southern German region must not be left behind. The EU and the federal government must finally ensure that the construction of a European network can start comprehensively and quickly. As long as network operators do not have investment security, no pipelines will be built or converted. It is unrealistic and counterproductive if the current operators of the natural gas networks are not allowed to operate the future hydrogen networks, as the EU currently envisions. This forces these operators into an opposition role to hydrogen out of self-preservation instead of winning them as partners for the conversion of the networks.“
8. Promote geothermal energy and significantly increase heat network funding
Aiwanger welcomes the new federal funding for efficient heat networks: „This is an important step for the decarbonization of our heat networks. The program must now be equipped with significantly more funds than before. Only then will there be enough money to expand heat networks and district heating pipelines nationwide in Germany. This is a mammoth task that will take several decades to complete but has enormous potential.“ The program duration of the funding programs must therefore be significantly extended. In Bavaria alone, 25 percent of the heat demand could be met by geothermal energy. „We have virtually unlimited hot water at several kilometers depth and do not use it because it has not been profitable on the market so far. This must be addressed,“ says Aiwanger. He calls on the government to implement the agreement from the coalition agreement and examine whether and how a so-called „discovery insurance“ can be introduced. Aiwanger: „Such nationwide and state insurance against exploration risks can give geothermal energy the breakthrough.“
9. Improve investment conditions for pumped storage
Pumped storage is currently the only significant and proven large-scale storage technology for electrical energy and makes an important contribution to security of supply. Under current market conditions, however, they are practically not economically viable. Aiwanger: „The federal government must significantly improve the conditions for investments in pumped storage plants. In particular, the remuneration system of the electricity market must be reformed so that the services of pumped storage plants, such as availability, grid serviceability, and cold start capability during power outages, finally become profitable in the market. Bavaria has about 20 good locations for pumped storage.“
10. Quickly and unbureaucratically reduce electricity prices
Aiwanger: „Taxes are home-made price drivers and must finally be reduced in the energy sector. This is possible in the short term and means no bureaucratic burden for consumers. Electricity tax and energy taxes on heating oil and natural gas must be reduced to the European minimum this year. The same applies to VAT rates on fuel, natural gas, electricity, and district heating. Rising transmission network charges must be reduced through federal subsidies. Additionally, an industrial electricity price must finally be introduced, and extensive, unbureaucratic carbon leakage protection ensured. The federal government must initiate a fundamental change of course, away from politically desired but ruinous high energy prices towards affordable energy prices. Otherwise, the federal government will drive the economy and society into the ground.“