© BMWE / Laurence Chaperon

Minister Katherina Reiche: Energy supply needs to be reliable and affordable

The new Minister of Economic Affairs and Energy, Katherina Reiche (CDU), is a respected energy expert. She picked up the baton on 6 May 2025 and has ambitious plans for Germany’s energy policy.

There is an expectant silence in the Ludwig Erhard Hall at the Federal Ministry for Economic Affairs and Energy. It’s only been a day since the ministry has been renamed: the Federal Ministry for Economic Affairs and Climate Action (BMWK) is now the Federal Ministry for Economic Affairs and Energy (BMWE). Today, the new minister is taking up office, and she is being awaited by her predecessor, Dr Robert Habeck, and the head of the Staff Council, Dr Viktoria Ludwig. Then, emotions erupt in a long round of applause for the outgoing minister, who gives a warm-hearted welcome to his successor.

In her inaugural speech as Minister for Economic Affairs, Katherina Reiche thanked her predecessor Dr Robert Habeck and all the staff of the former BMWK for their work in “eventful times”. “At the very beginning of your term in office, before the consequences of the pandemic had even been dealt with, Russia launched its attack on Ukraine. Suddenly, a response to a massive gas crisis in Germany and Europe had to be found. It is hard to describe the scale of the workload this meant for you and the Ministry. From the beginning, you accepted this exceptional situation as your task, showed a presence, defended what were unpopular decisions”, said Minister Reiche.

© BMWE / Laurence Chaperon

^{Changes in energy policy announced}

The Minister devoted much of her speech to energy issues, saying: “Security of supply is paramount”. Ms Reiche cited the blackout on the Iberian peninsula as an example of the electricity system’s vulnerability following the massive blackouts in Spain and Portugal on 28 April 2025.

The Minister stressed that the expansion of wind and solar power had allowed Germany to make good progress in the field of climate action. “However, we need to get the costs of the system under control.” For this, she said, a reality check was needed: “How fast and far do we need to go and what is required for this to happen?”

“There can be no doubt that renewables are a success story”, the Minister declared. But these alone, she said, were still not sufficient to ensure a reliable, round-the-clock supply of affordable electricity. The auctions for gas-fired power stations, in particular, should now soon take place to ensure security of supply. The Coalition Agreement puts the scale of these at up to 20 megawatts. Greater room is also to be given to CCS (Carbon Capture and Storage) and CCU (Carbon Capture and Utilisation).

^{Renewables expansion is to be better synchronised with grid expansion}

“The reality check also includes better synchronisation with grid expansion, both in terms of geography and timelines. We will thoroughly take stock and then give this issue the highest level of priority,” the Minister went on to say. She stressed that an expansion of the power grid was definitely needed to ensure the integration of renewables and highlighted the importance of modernising existing power lines in Germany and building new ones.

^{Stabilise and reduce electricity prices}

In her inaugural speech, the Minister also spoke about the high electricity prices paid by consumers and companies. She said that the Coalition Agreement contained plans for an electricity price for industry, for reserve power plants and for the system governing grid fees. Electricity prices, she said, had to be stabilised and brought down. Companies are to be encouraged to purchase long-term gas-supply agreements. The Minister also said that a large number of energy partnerships are needed to diversify supply.

^{Measures for a more flexible electricity system.}

The Minister underlined the need for the electricity system to become more flexible, mentioning dynamic electricity tariffs and bidirectional charging. She said that technology-neutral regulation and encouraging innovation are important to her. “I have seen for myself how much inventive spirit there is in companies. Solutions that are being worked on and that are not on the radar yet.”

Katherina Reiche was born in Luckenwalde on 16 July 1973. She studied chemistry before becoming a Member of the German Bundestag from 1998 to 2015. From 2009 to 2013, she was a Parliamentary State Secretary at the Federal Ministry for the Environment; from 2013 to 2015 at the Federal Ministry of Transport. Until her appointment as Federal Minister, she was CEO of Westenergie AG.

A more detailed CV can be found here (in German only).