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The coalition agreement foresees the reintegration of reserve power plants to the electricity market. However, a new Policy Brief by the EWI shows: The price effect depends on the specific design, while grid charges may increase and investment incentives could decline.

Today, the Council of Experts on Climate Change published its review report of the German greenhouse gas emissions for the Year 2024 and the projection data of 2025. EWI Director Marc Oliver Bettzüge is part of the five-member panel.

The EWI has analysed four energy policy proposals from the coalition agreement between the CDU, CSU and SPD: the reduction in electricity prices, the financing of renewable power plants, the expansion of the core grid and the Building Energy Act.

The European Emissions Trading System (ETS2), planned to start in 2027, could drive up CO₂ prices in the building and transport sectors. This would have distributional effects and increase the pressure on households to invest in climate-neutral technologies.

In the course of decarbonisation, a decline in demand for natural gas is expected in many European countries. A new working paper by researchers at the EMI shows that degressive depreciation of gas grids to be decommissioned is theoretically welfare-optimal.

EWI compared heating technologies in terms of emissions, infrastructure, and heating costs. The analysis considered both renovated and unrenovated building types, as well as the trade-off between costs and emissions.