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Germany to ramp up southern gas production and reduce energy levies

Cabinet aims to approve relief measures by summer recess to ease mounting energy costs

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Overview

  • Economics Minister Katherina Reiche announced a Südbonus plan directing two-thirds of a 20 GW gas capacity tender to southern Germany.
  • The government is in intensive negotiations with the EU Commission to secure approval for new gas power plants.
  • Cabinet is set to pass relief measures before the summer break, cutting electricity tax, network charges and the gas storage levy.
  • Policy seeks to curb investment flight by lowering power costs for businesses and restoring industrial competitiveness.
  • The strategy is designed to balance supply security, climate protection and affordability in Germany’s energy mix.