German Economy Minister Katherina Reiche has sparked a storm in energy policy by announcing a complete halt to subsidies for small photovoltaic installations. Simultaneously, the ministry plans to intensify domestic natural gas extraction and import biogas from Ukraine. These decisions, justified by falling solar technology costs and the need to ensure energy security, have met fierce resistance from coalition partners in the SPD and the opposition Greens.

End of Subsidies for Solar Roofs

The Ministry of Economy plans to remove subsidies for small photovoltaic installations up to 25 kW, arguing they are already fully profitable without state aid.

Increase in Gas Extraction

Germany wants to expand domestic natural gas extraction and focus on importing biogas from Ukraine to improve energy security.

Extraction in the Galápagos

Ecuador's parliament granted permission for resource exploitation in the protected area of the Galápagos Islands, sparking worldwide protests.

Political Opposition in Germany

The SPD and the Greens announce they will block changes to energy law, calling them a step backward for climate protection.

The German government is preparing for a fundamental change in its energy transition strategy. Economy Minister Katherina Reiche presented a draft law that would definitively end financial support for small photovoltaic systems with a capacity of up to 25 kilowatts. According to the ministry, rooftop solar has become profitable enough that further subsidization from the state budget is economically unjustified. However, the solar industry and left-wing politicians warn that such a sudden withdrawal of support could hamper the transition to renewable energy for households. Alongside cuts in the renewable energy sector, the ministry is turning its attention to traditional resources. Faced with low gas storage levels, which have fallen to 20 percent, Reiche advocates for expanding domestic extraction of natural gas. This plan includes exploring new deposits within Germany and strengthening cooperation with Ukraine, which is to become a key supplier of biogas. This two-pronged strategy—cutting solar subsidies while returning to gas—is interpreted as an attempt to stabilize energy prices at the expense of ambitious climate goals. Germany's energy transition, known as the Energiewende, was launched at the beginning of the 21st century and aimed for a complete shift to renewable energy while phasing out nuclear and coal-fired power plants. In the shadow of Germany's energy disputes, concerning news has arrived from South America regarding environmental protection. Ecuador's parliament approved a controversial law allowing mining operations and resource extraction in the Galápagos archipelago. This decision, motivated by the country's difficult economic situation, has been met with international condemnation from environmental organizations, which point to the unique ecosystem of the islands, the cradle of the theory of evolution. The Galápagos Archipelago was inscribed on the UNESCO World Heritage List in 1978 due to the presence of endemic animal species, such as giant tortoises and marine iguanas. Criticism of Minister Reiche comes not only from outside but also from within the government. The SPD described the plans to halt subsidies as "unacceptable," suggesting a serious crisis in the ruling coalition. However, the minister defends her vision, emphasizing that the state must respond to changing market conditions and cannot forever subsidize technologies that have already achieved commercial maturity. The debate over the new shape of Germany's energy mix will now enter a decisive parliamentary phase.

Mentioned People

  • Katherina Reiche — German Economy Minister responsible for the project to limit subsidies for the solar sector.