Germany’s newly appointed Economy and Energy Minister, Katherina Reiche, has called for a major recalibration of the country’s energy transition, warning that renewable energy alone cannot reliably power an industrial economy. In her first public remarks since taking office, Reiche emphasized the urgent need for flexible gas-fired power plants, while ruling out a return to nuclear energy and advocating for a more realistic and transparent assessment of the country’s energy landscape.
Gas Power Essential for Energy Security
Speaking at the Ludwig Erhard Summit in Tegernsee, Minister Reiche called for the rapid tendering of at least 20 gigawatts of gas-fired power generation capacity. She underlined the importance of stable, dispatchable power sources that can compensate for the intermittency of wind and solar energy.
“We need gas plants that can deliver electricity when renewables fall short—and we need them fast,” she said, noting that Germany cannot rely solely on energy imports or the generation capacity of neighboring countries.
Energy Transition Requires Transparency and Flexibility
Reiche stressed that while the expansion of renewable energy has been pivotal in driving Germany’s climate agenda, it has also introduced hidden system costs, particularly related to grid expansion.
“There must be greater transparency and ongoing monitoring of the real costs and progress of the energy transition,” she urged, calling for what she described as a “reality check” on Germany’s current energy policies. She argued that an honest evaluation of the energy transition’s current trajectory was necessary to ensure long-term sustainability and affordability.
A Broader Strategy: Domestic Gas, Long-Term Imports, and CCS
In addition to accelerating tenders for new gas turbines, the minister signaled intentions to boost domestic gas production and secure long-term import contracts to bolster energy security. She also pledged to promote technologies like carbon capture and storage (CCS) and carbon capture and utilization (CCU) as part of the broader energy strategy.
Reiche highlighted the need for better coordination between the expansion of renewable capacity and the development of grid infrastructure. She announced a comprehensive assessment of both, aiming to synchronize the two more effectively in terms of location and timing.
Nuclear Energy Remains Off the Table
Addressing speculation about a potential return to nuclear power, Reiche confirmed that Germany’s nuclear phase-out remains final.
“The nuclear exit has been completed. Reintroducing it would require not only funding but also long-term trust from companies—something that is currently lacking,” she stated.
Reiche, a former energy executive herself, noted widespread industry skepticism regarding the viability and political permanence of any future nuclear policy shift. She pointed out that the opportunity to extend the operating life of Germany’s last three nuclear plants during the recent energy crisis had passed without political consensus.
Policy Continuity and Bundestag Plans
Reiche’s policy stance represents a shift in tone but retains certain elements of continuity with her Green Party predecessor, Robert Habeck, particularly the call for rapid gas plant development. While suggesting that the pace of renewables expansion may need to be moderated to align with infrastructure constraints, she reiterated Germany’s commitment to climate goals under the new coalition government led by Chancellor Friedrich Merz’s conservative CDU and the Social Democrats (SPD).
A return to nuclear energy was notably absent from the coalition agreement, indicating no plans for policy reversal on that front.
Reiche is scheduled to deliver her first official statement in the Bundestag on May 15, where she will outline her policy agenda and engage in parliamentary debate during a 60-minute session.
