German Bundestag Passes Comprehensive Energy Reform Package

The legislation aims to bolster renewable energy integration, extend support for efficient energy systems, and address grid challenges ahead of the federal election.

• The Bundestag approved an energy reform package with cross-party support from the SPD, Greens, and CDU/CSU, focusing on renewable energy and energy efficiency improvements.
• Key measures include extending subsidies for combined heat and power plants beyond 2026, with restrictions criticized by environmental groups for potentially supporting fossil-based systems.
• The legislation introduces changes to improve grid resilience, including mechanisms to manage solar power surges and adjustments to compensation for renewable energy producers during negative electricity prices.
• Support for bioenergy will increase, with higher auction volumes to ensure stable energy supply during periods of low wind and solar generation.
• Changes to wind energy regulations aim to prevent land misuse for unsuitable projects, with specific measures impacting planning in North Rhine-Westphalia.

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