Germany’s government is set to analyze its energy system as it seeks to lower costs and integrate more gas generation, according to Economy Minister Katherina Reiche. The move comes amid concerns over high energy prices, which have been a significant issue for voters and impacted industrial competitiveness. Germany previously relied on inexpensive Russian gas but had to pivot towards renewable energy due to disruptions caused by the Ukraine war. The new coalition government aims to cut electricity taxes and grid fees while introducing gas-powered plants to stabilize prices when renewable energy production fluctuates. Reiche emphasized the need for a reality check on the energy transition, focusing on electricity demand, supply security, and the progress of grid and renewables expansion. Key decisions on tax reductions are expected before the summer, with further plans to be implemented by year-end. Germany is also exploring tenders for gas power plants, with the first auction anticipated by the end of the year. Reiche advocates for a fair energy market that supports all clean and efficient technologies without favoring any single solution.
— new from Reuters
