German states warn €32 billion in green energy investments at risk by 2026
Germany's Renewable Energy Act (EEG) has been the foundation for the expansion of renewables in the country, according to the two states involved. However, the law is set to expire at the end of 2026. A newly commissioned expert report, as cited by the ministers, underscores the need for functional support mechanisms for renewable energy beyond 2026—including continued subsidies for private rooftop solar installations.
The ministers criticized current draft proposals for failing to adequately account for the diversity of stakeholders, particularly smaller project developers, who must be given greater consideration.
"Expanding solar, wind, and biomass lowers electricity prices across Germany," said Christian Meyer, energy minister of Lower Saxony. "There must be no gap in funding for photovoltaic systems, wind turbines, biogas plants, and storage solutions. The energy sector needs long-term planning security for billions in investments toward an affordable, efficient, and climate-neutral future."
Meyer emphasized that the proposed introduction of Contracts for Difference would provide the renewable energy industry with the necessary planning certainty. Last year alone, Lower Saxony approved 807 wind turbines with a combined capacity of over 5.1 gigawatts. Yet, he warned, €32 billion in investments for renewables, grids, and storage are now at risk.
Tobias Goldschmidt, energy transition minister of Schleswig-Holstein, stated: "This report puts a bold exclamation mark behind all those who have long demanded clarity for the energy transition after 2026. So much is at stake: climate protection, economic value, competitive advantages, and a future-proof industrial base."
The ministers also directed criticism at Federal Economics Minister Katharina Reiche's plans. Meyer accused her of pushing for new gas-fired power plants in southern Germany with billions in subsidies while simultaneously blocking grid and renewable energy expansion across large parts of Lower Saxony.
According to the ministers, the Lower Saxony/Bremen Renewable Energy Association (LEE) fears that Reiche's plans could jeopardize €32 billion in investments in Lower Saxony alone.
Meyer called for a "grid booster" initiative, urging the federal government to allocate additional funding and provide financial support to distribution grid operators. At the same time, he insisted that operators must be legally obligated to expand networks within a fixed timeframe.
"If they fail to do so, they should have to repay financial support and face penalties," the Lower Saxony energy minister warned. "We cannot afford to waste the surplus wind and solar power we generate in this state."
Lower Saxony reports that it has reduced the average permitting time for wind turbines to 10.6 months. The ministers noted that Germany currently spends over €80 billion annually on fossil fuel imports—far exceeding the cost of domestic renewable energy subsidies under the EEG.
