Clean energy groups warn of policy stalemate as Germany’s governing coalition collapses

On the morning of Nov. 6, 2024, in Europe, Donald Trump won the US election. By evening, Germany was left without an effective government.

The dismissal of federal Finance Minister Christian Lindner (of the FDP), by SPD Chancellor Olaf Scholz prompted withdrawal of FDP ministers from the cabinet, leaving only the SPD and the Greens from the “traffic light” coalition.

With Scholz having stated he does not wish to have the confidence vote in government – which would pave the way for fresh elections – until mid-January 2025, the SPD and Greens could struggle to pass legislation given they can muster only 324 party votes in the 733-member Bundestag.

The former coalition had committed to passing a “growth initiative,” including measures to help drive energy storage and solar deployment, during 2024. That legislative package is now in serious doubt.

Carsten Körnig, general manager of the Bundesverband Solarwirtschaft (BSW-Solar) industry body which is the voice of solar and energy storage in Germany, warned against political inaction.

“A successful energy and climate protection policy requires sufficient scope for action and capable majorities in the Bundestag,” said Körnig, pointing out solar alone employs 150,000 workers and generates an annual turnover of €25 billion ($26.9 billion). “Every party-political or ideological delay endangers the supply of industry and business with cheap electricity from renewable energy.”

BSW-Solar said Bundestag members must “now demonstrate the ability to make decisions and compromise on important energy policy issues across party lines, to ensure investment security in the energy transition and to continue to remove market barriers.” The association said it expected “all serious parties will make a clear commitment to continuing the expansion of solar energy during the election campaign,” to avoid causing investor and customer uncertainty.

Simone Peter, president of wider renewable energy association the Bundesverband Erneuerbare Energien, said “The end of the traffic light coalition during the current national, European, and international challenges is a political confession of failure … It is now important that the laws and budgetary resources already in process for the continuity of energy measures are passed by December [2024]. We cannot afford stagnation and stalemate, even in a political crisis.”

From pv magazine Deutschland.