(Berlin) – The Federal Ministry for Economic Affairs and Climate Action (BMWK) has presented an “Energy Efficiency Work Plan.” In it, the Federal Government defines “important steps for saving more energy and increasing energy efficiency,” according to the ministry. The plan includes a catalog of measures with financial incentives, targeted funding, and adjustments to the regulatory framework – also for hydrogen and power-to-X processes.
Promote the market ramp-up of hydrogen
“A real boom in demand for green hydrogen can be observed in industry,” says the five-page paper. The federal government is supporting the market ramp-up through a large European hydrogen project (IPCEI Hydrogen – Important Projects of Common European Interest) with over eight billion euros for 62 projects along the entire value chain. There are also funds totaling 900 million euros for the “H2Global” double auction model as well as support for energy partnerships and the expansion of renewable energies in Germany.
Electricity use is tax-free for Power-to-X processes
“We will further improve the use of renewable electricity by increasing the amounts of green industrial electricity,” said Federal Economics Minister Robert Habeck when presenting the program. Through a regulation based on the motto “Use instead of switching off”, electricity that cannot be used in the network should be used in storage media or Power-to-X processes without taxes and fees.
To facilitate the operation of climate-friendly processes in energy-intensive industries, the Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK) launched an expression of interest process for Carbon Contracts for Difference (CCDs) at the beginning of May. These agreements are intended to enable the market launch of climate-friendly processes, particularly in basic materials industries, by reducing risks and offsetting operating cost differences between conventional and climate-friendly processes. This could also include the preferential use of green hydrogen, according to the " Climate Protection Opening Balance Sheet " presented by the Ministry at the beginning of the year. Carbon Contracts for Difference would provide financial support for investments in hydrogen technologies.
By the summer, the BMWK will develop a guideline that will be submitted to the European Commission for approval. The climate protection agreements are then to be introduced as a funding instrument this year.
New funding and revision of previous standards
Other measures in the “Energy Efficiency Work Plan”, which includes a dozen points, include funding offers for households and companies as well as the new version of standards.
- Realignment of federal funding for efficient buildings (BEG): The promotion of the installation of gas heating systems will end with the BEG reform, and this has already been implemented in some cases (e.g. in the promotion of the EH 40 efficiency house standard).
- Disincentives in promoting new construction: The KfW Efficiency House Standard 55, which has long since established itself on the market, has been funded with large amounts of money for too long. Around six billion euros of tax money went to this in 2021, which corresponds to around a third of the total funds available for building efficiency promotion in 2021.
- Natural gas and heating oil: A CO2 price should be divided between landlords and tenants according to a tiered model. The worse the energy balance of the respective building, the higher the share for landlords.
- Energy and resource efficiency funding program in the economy: The EEW will be amended this year to support the change in energy sources in industry. This is particularly about the generation of industrial process heat, for example using deep geothermal energy.
- Market ramp-up for heat pumps: The plan is to promote the replacement of oil and gas heating systems. The goal is to increase the number of newly installed heat pumps to over 2024 per year by 500.000. A “heat pump development program” is intended to provide incentives for craft businesses and planning offices to take part in further training.
- Heat supply networks: Municipalities and municipal utilities have already developed ideas on how they could convert and decarbonize their heating networks to renewable energies. Federal funding for efficient heating networks (BEW) should accelerate this. As soon as the approval process with the EU has been completed, the program should encourage “a direct switch to renewable energies without fossil bridges” this year.
- Minimum efficiency standard in new buildings: From 2024, every newly installed or replaced heating system will have to use at least 65 percent renewable energy, for example through heat pumps, solar thermal energy or wood pellets. The necessary amendment to the Building Energy Act will be presented in the second half of the year.
- Solar roofs as standard: The amendment to the Renewable Energy Sources Act has already led to “a significant improvement in feed-in tariffs for rooftop systems”. A legal anchoring in the Building Energy Act is planned for the second half of the year.
The federal government's goal so far is to reduce final energy consumption by 2030 percent by 24. Habeck: “Germany has only achieved two percent in ten years. So we need more speed and consistency.”
Photos
Federal Minister of Economics Robert Habeck © BMWK / Andreas Mertens
