© Federal Ministry for Economic Affairs and Energy, energy research funding provided by the Federal Ministry for Economic Affairs and Energy in 2024.

Research for tomorrow’s energy world

The objective is to speed up the transfer of innovative ideas from energy research into practical application. The most important lever here is targeted funding for research projects. The 2025 Federal report on energy research presents progress and developments.

Energy research projects – e.g. on AI-optimised district heating networks or the conversion of industrial processes to efficient hydrogen technologies – provide important blueprints for tomorrow’s world of energy. They help translate new solutions for a secure, affordable and climate-friendly energy supply from theory into application, thus strengthening the competitiveness and future of our industry in Germany. For this reason, the Federal Government provides funding for companies that invest in energy research and innovation, alongside research institutions and institutes of higher education.

^{Update on funding for energy research in Germany}

The report published by the Federal Cabinet on 10 December provides a detailed overview on the latest developments regarding energy research funding in Germany. It lists not only the funding provided by the Federal Government, but also by the Länder and also covers European and international cooperation on energy research. There is also an inspiring presentation of select projects that have made a special contribution to the modernisation of the energy system.

In 2024, the Federal Government provided €975 million worth of funding for 6,763 research projects. Of this funding, 23% was paid out to research institutions, 19% to large corporations and 24% to institutes of higher education. The largest share (30%) was disbursed to small and medium-sized enterprises. The investments made by companies themselves in newly approved research and development projects was impressive: their total stood at some €309 million.

^{New funding initiatives to support key aspects of the energy system}

In 2026, the Federal Ministry for Economic Affairs and Energy launched a number of new funding measures, including an exploration initiative for geothermal energy to explore the potential of that heat source in Germany. Funding is provided for site-specific preliminary studies, geophysical surveys, first drillings and scientific support work. Other calls for projects focus on key energy supply issues, including cyber resilience, test infrastructures and the Living Labs of the Energy Transition. These living labs are designed for the real-life testing, assessment and transfer into application of new technologies, systemic approaches and business models. In this way, the Federal Ministry for Economic Affairs and Energy closes the gap between applied research and the roll-out of innovations, thus complementing the project funding provided under the 8th Energy Research Programme for Applied Energy Research.