Germany: Energy

Domestic

Germany's energy landscape in February was characterized by a dual focus on advancing the renewable transition while managing immediate security concerns. Several states, including Bavaria and Mecklenburg-Vorpommern, are progressing with specific renewable energy projects, from wind turbines to industrial centers, as the federal government develops new transition rules. Concurrently, the nation's underground gas storage levels dropped below 30%, highlighting ongoing energy security challenges. Political opposition to these energy policies was evident, with the far-right AfD campaigning against wind power. A separate operational incident, a major power outage in Stuttgart, was attributed to a switching error.

International

On the international front, German Chancellor Friedrich Merz engaged with key energy suppliers in the Middle East. Merz visited Qatar to discuss strengthening the partnership for LNG supplies, and the government is seeking new gas suppliers in the region, having agreed to enhance energy cooperation with Saudi Arabia. In a separate domestic-international financial move, the German federal government acquired a 25% stake in the German subsidiary of the electricity grid operator Tennet.