Elections in Germany on February 23

Voters in Germany, Europe’s largest economy, will cast their votes on February 23 during the first elections since severing ties with Russia, its long-time gas supplier.

Major Parties’ Energy Policies

CDU/CSU

The conservative Christian Democrats (CDU), along with their Bavarian sister party CSU, promise to reduce power prices by at least 5 euro cents per kilowatt hour (kWh), amounting to around 12% of 2024 prices. They plan to cut power grid fees by increasing carbon emissions permit prices and incentivizing private investment in power grids. The parties are also considering a reconsideration of nuclear energy, which was abandoned in 2022, and may revoke the ban on fossil car fuels by 2035. CDU leader Friedrich Merz believes a rapid transition to hydrogen will not succeed.

AfD

The far-right Alternative for Germany (AfD) suggests maintaining gas, oil heating systems, and hard coal power stations. It intends to continue domestic brown coal mining and reverse the withdrawal from nuclear energy, criticizing the current coalition’s renewable energy transition as ideologically driven and detrimental to economic stability. AfD proponents want to exit the Paris climate agreement, lower energy taxes, and restart the Nord Stream gas import pipelines from Russia. Chancellor candidate Alice Weidel stated she would “tear down” wind turbines to alleviate grid fees.

SPD

The Social Democrats (SPD) plan to continue subsidizing renewable energy with a transformation fund that reimburses consumers for taxes and levies collected. They aim to ease constitutional limits on public debt to increase funding for energy subsidies while remaining dedicated to a green transformation. SPD proposes temporary tax deductions to incentivize purchases of German-made electric vehicles.

GREENS

The Greens party seeks to promote renewable energy and has developed plans for a capacity market design to support gas-to-power plants, serving as backups for wind and solar. Their agenda includes promoting electric vehicles, heat pumps, energy sharing, and efficiency, while offering ongoing support to low-income consumers. They intend to finance green initiatives through increased state borrowing.