The results of the German federal elections have sparked a strong reaction from the energy sector, which is now demanding stability, a clear regulatory framework, and a firm commitment to the energy transition. With Friedrich Merz and the CDU/CSU-SPD coalition taking power, industry associations and companies are closely monitoring the new government’s next steps.

“The implementation of the energy transition will take decades, so we need a consistent and reliable regulatory framework that is not dependent on legislative periods,” states Kerstin Andreae, Chair of the Federal Association of Energy and Water Industries (BDEW). She emphasises the importance of ensuring policy continuity and avoiding abrupt changes that could disrupt the sector’s planning.

Dr. Vivien Vacha, Legal Counsel Germany at TES-H2, stated to Strategic Energy Europe that “Technological openness together with demand creation for green gases must be pillars of Germany’s new energy policy. Also, the rapid implementation of urgently needed energy infrastructure construction projects and a stable regulatory framework need to be part of the agenda. TES is looking forward to supporting the new government with the implementation.“

Germany Federal Elections’ Preliminary Results

The Energy Sector Demands a Stable Government and Clear Policies

The coalition negotiations between the CDU/CSU and the SPD have been well received by the energy sector, which views a stable administration as essential for industry growth. According to the German Renewable Energy Federation (BEE), it is crucial that the new government provides planning security and clear conditions for investment in renewable energy.

“The industry is ready to shift gears in the coming years. The federal government must establish the framework for this,” the BEE states in its official post-election declaration. The association insists that the expansion of renewable energy cannot be slowed and that clear signals must be sent for its continued development.

The German Solar Industry Association (BSW-Solar) echoes these concerns. Its president, Joachim Goldbeck, asserts: “Photovoltaics is the most cost-effective and sustainable form of electricity generation; it will continue to be the backbone of the energy transition and the European economy”.

However, there is growing unease about a possible policy shift. Marcus Elsässer, founder and CEO of Solar Promotion, warns that any deviation from the existing energy transition strategy could undermine Germany’s competitive position: “Every hesitation, every politically motivated change of objectives, worsens the consequences of climate change and increases the inevitable social costs”.

The Return of Nuclear Power: A Major Shift

One of the most controversial topics following Merz’s victory has been his recent statement on national television advocating for “a moratorium on the dismantling of nuclear plants”. This marks a significant departure from the policies of previous governments and has been welcomed by nuclear energy supporters.

A group of nuclear energy activists and experts, who have worked for years to prevent Germany’s nuclear phase-out, have celebrated this announcement, asserting that up to nine reactors could be restarted by 2032 if the Merz government adopts a strategic plan. “This moment represents a massive shift for Europe,” they claim. “For a decade, Germany has used its influence in financial institutions and NGOs to undermine global nuclear energy using taxpayer money.”

Merz will need to navigate resistance from anti-nuclear factions within the German bureaucracy. However, nuclear advocates argue that public opinion is on their side: “According to our latest polling, two-thirds of Germans want to continue using nuclear power”.

Economic Challenges and Their Impact on Energy Policy

Germany’s economic outlook will play a crucial role in shaping the new government’s energy policy. Despite historically low unemployment, the country has faced two consecutive years of recession (-0.2% in 2024 and -0.3% in 2023), raising concerns among both the public and financial markets.

The rightward shift in the elections reflects, in part, voter dissatisfaction with the outgoing government’s economic performance. Global competition in the technology sector, high energy costs, and the impact of the war in Ukraine have contributed to a negative perception of Germany’s economy.

Sven Steinert, CEO of SustainX, warns that Germany risks losing its position as an economic leader if it does not adopt a clear stance on sustainability and the circular economy: “Circularity is not an option; it is an economic necessity to secure resources and maintain industrial competitiveness”.

Meanwhile, Benjamin Frank, Managing Director of Solarwatt, stresses that the new government must base its decisions on facts rather than political narratives. “Solar and wind power are by far the cheapest forms of energy, with electricity generation costs as low as four cents per kilowatt-hour,” he states, reminding policymakers that any attempt to revive nuclear energy will face significant economic barriers.

What’s Next for Germany’s Energy Policy?

The new Friedrich Merz government will have to strike a balance between the energy industry’s demands, voter expectations, and global market realities. While some sectors welcome the potential revival of nuclear power, others warn that renewable energy remains the only viable long-term solution.

The business community and industry associations agree that the priority must be to establish a stable regulatory framework, enabling long-term planning and investment in clean technologies. As the BEE concludes, “The energy transition is a democratic project for society as a whole”, and the Merz administration will need to demonstrate its commitment to Germany’s energy future.