On September 15, 2025, the Federal Ministry for Economic Affairs and Energy presented the monitoring report on the energy transition. The report, commissioned by the coalition parties in the coalition agreement, was prepared by the institutes BET and EWI and is intended to highlight the current state of the energy transition in Germany.
Federal Minister of Economic Affairs Katherina Reiche presented ten key measures to realign the energy transition. She emphasized that Germany is at a turning point and that greater pragmatism and realism are required. Despite progress in the expansion of renewable energies – with almost 60% of electricity now coming from wind, solar, and other renewable sources – reliability, security of supply, affordability, and cost-efficiency must be placed more firmly in focus.
The ten key measures proposed by Reiche are:
- Honest assessment of demand and realistic planning
- Promotion of renewable energies that are market- and system-oriented
- Simultaneous expansion of grids, renewables, and decentralized flexibility
- Rapid introduction of a technology-neutral capacity market
- Promotion of flexibility and digitalization of the electricity system
- Preservation and expansion of unified and liquid energy markets
- Review of subsidy schemes and systematic reduction of subsidies
- Advancement of future-oriented research and promotion of innovation
- Practical support for the ramp-up of hydrogen, particularly by simplifying overly complex regulations
- Establishment of CCS/CCU (carbon capture and storage/utilization) as climate protection technologies
Reiche underlined that “secure, clean, and affordable energy” is essential for safeguarding jobs, competitiveness, and social cohesion. She also warned against misguided investments and overregulation, calling instead for reliance on markets, a diversity of technologies, and innovation.
Statement from the Steel Industry
The German Steel Federation, represented by its Chief Executive Kerstin Maria Rippel, generally welcomed the initiative and the proposed measures. She praised the government for taking clear corrective steps.
At the same time, the steel industry sees urgent need for action in several key areas. It points out that energy prices remain too high in international comparison and therefore calls for effective relief for energy-intensive companies in order to safeguard Germany’s competitiveness as an industrial location. It also stresses the need for greater security of supply, which requires sufficient back-up capacity for times with little wind and sun. A capacity mechanism is considered necessary but should not lead to a further increase in electricity costs. Furthermore, the industry is urging a faster ramp-up of hydrogen, which is crucial for decarbonizing steel production. To enable the necessary investments, regulatory frameworks must be made more flexible and adapted quickly.
Shared Goals and Criticism
Both the federal government and the steel industry agree that the energy transition must continue with determination. However, they emphasize different priorities: while the government pursues a comprehensive, systemic approach with a broad package of measures, the steel industry focuses primarily on affordability, security of supply, and the expansion of hydrogen.
Critical voices – such as those from the German Environmental Aid (DUH) and the Green Party parliamentary group – warn that the plans could slow down the expansion of renewables. They also see a risk that a technology-neutral capacity market could create new dependencies on fossil fuels.
