© Adobe Stock / Konstantin Yuganov
Research for the energy of the future
The Federal Ministry for Economic Affairs and Energy is now launching a range of new measures to strengthen energy research as part of the implementation of the 10 point plan (covered by us) (in German only) for a reorientation of energy policy that was presented by Federal Minister for Economic Affairs and Energy Katherina Reiche in September. The following funding measures were presented in the context of the 2nd Energy Research Conference (in German only) on 11 November 2025.
Finding and exploiting sites for using geothermal energy in Germany
Germany’s heat supply is still largely covered by fossil fuels including oil and gas. However, climate-friendly alternatives are needed to bring down the level of greenhouse gas emissions. The use of near-surface and deep geothermal energy is particularly promising in this regard. By 2030, some ten terawatt-hours worth of geothermal potential is to be exploited.
This requires precise information about what lies beneath the soil in order to bring down drilling costs and allow for installations to be economically viable. The Federal Ministry for Economic Affairs and Energy supports this objective through its geothermal exploration initiative. Under this initiative, funding is provided for projects that add to the geological database on potential site and develop modern exploration techniques.
Transfer Initiative for Energy Innovations
The Transfer Initiative for Energy Innovations is financed from the special fund for infrastructure and climate neutrality. It is intended to pave the way for the practical application of climate-friendly, innovative technologies. Two funding calls are now being launched in this context. The funding call for test infrastructures (in German only) focuses on projects for wind energy, PV, heat and cold and for flexible electricity grids. The 2nd call funding call is to speed up the use of industrial and large-scale heat pumps and of thermal energy storage in the industrial context.
A fresh start for the Regulatory Sandboxes for the Energy Transition
The regulatory sandboxes for the energy transition (in German only) are a funding instrument for near-market developments that was launched in 2019. Funding is provided for projects that test innovative technologies, systemic approaches and business models, all under real operational conditions, and transfer them into practice. The focus of the current call is on electricity and heat. The objective is reduce costs and emissions, stabilise the grid and ensure security of supply.
Beyond this, there will be additional funding calls for key issues of the energy supply, including cyber resilience (in German only), the cost-effective retrofitting of buildings (in German only) and lowering the cost of district heating pipes (in German only).