(Reuters) – Voters in Germany, Europe’s largest economy, are set to participate in elections on February 23, marking the first electoral event following Berlin’s termination of its longstanding partnership with Russia as its primary gas supplier.
The major political parties have outlined their energy policies as follows:
CDU/CSU
The conservative Christian Democrats (CDU), in conjunction with the Bavarian sister party CSU, have pledged to reduce electricity prices by at least 5 euro cents per kilowatt hour (kWh), representing approximately 12% of 2024 prices. Their proposal includes lowering power grid fees that contribute to consumers’ expenses, partially through the elevation of carbon emissions permit prices, alongside offering incentives for private capital to invest in power grid infrastructure. Additionally, both parties are open to revisiting the topic of nuclear energy, which was phased out in 2022, and are considering the rescission of the ban on fossil car fuels from 2035. CDU leader Friedrich Merz has expressed skepticism regarding a rapid transition to hydrogen, indicating potential challenges.
AFD
The far-right Alternative for Germany (AfD) advocates for the continuation of gas and oil heating systems, as well as the operation of hard coal power plants. They support the maintenance of domestic brown coal mining and oppose the abandonment of nuclear energy. Criticizing the ruling coalition’s renewable energy agenda as “ideological,” AfD warns of increased poverty, deindustrialization, and heightened import reliance resulting from such policies. The party proposes exiting the Paris climate agreement, reducing energy taxes, and reactivating the Nord Stream gas pipelines from Russia beneath the Baltic Sea. Chancellor candidate Alice Weidel has proposed the dismantling of wind turbines to alleviate grid fees associated with renewable energy expansion.
SPD
The Social Democrats (SPD) have committed to continuing subsidies for renewable energy, with plans to establish a transformation fund aimed at reimbursing consumers for taxes and levies collected from them. They seek to relax constitutional constraints on public debt, known as the debt brake, to secure additional funding for energy subsidies in support of a green transition. The party is enthusiastic about promoting the purchase of German-manufactured electric vehicles through temporary tax deductions.
GREENS
The Greens party is dedicated to furthering the cause of renewable energy. They have advanced strategies for a capacity market framework to complement proposed gas-to-power facilities intended to serve as backup to offset the intermittent nature of wind and solar electricity. In addition to advocating for electric vehicles, heat pumps, energy sharing, and efficiency improvements, the Greens aim to continue assisting low-income consumers. Their green initiatives are slated to be financed through augmented state borrowing.
The upcoming elections in Germany hold significance not only for the country but also for Europe as a whole, especially in the realm of energy policy. The divergent approaches proposed by the major parties reflect the complex challenges and opportunities inherent in the transition towards sustainable and diverse energy sources. Voters will play a crucial role in determining the direction of
