GERMANY Law and Practice Contributed by: Gregor von Bonin, Natascha Doll, Andreas Ruthemeyer, Stefan Schröder and Mirko Masek, Freshfields
in energy companies where necessary to safeguard Germany’s energy supply. These powers include, among other measures, the ability to nationalise criti- cal energy companies. For example, the nationalisa- tions of Uniper (2022) and SEFE (formerly Gazprom Germania) were implemented on the basis of the amended EnSiG. Smart Meter and Energy Law Package Amendments to the Energy Industry Act (EnWG) and the Metering Point Operation Act (MsbG) introduced an accelerated rollout of smart metering systems (iMSys), prioritising controllable and system-relevant metering points and adjusting statutory price caps. These reforms strengthen the economics of metering- point operators and grid-adjacent service providers while embedding data and flexibility management more firmly in the regulated framework. ECJ on the “Customer Installation” Concept Under § 3 No 24a EnWG In late 2024, the ECJ held that Germany’s broad “customer installation” exemption from distribution- system regulation is incompatible with the EU Inter- nal Electricity Market Directive. The decision calls into question the long-standing national practice that allowed large industrial sites and real estate complex- es to operate quasi-private grids without full network- operator obligations. 6.2 Key Developments in Renewable Energy and Cutting Emissions The German government continues to combine ambi- tious energy-transition targets with its overarching commitment to achieve greenhouse-gas neutrality by 2045, while balancing affordability, security of supply, and cost efficiency. Acceleration of Renewables Permitting and Grid Connection A key legal development has been the transposition of the EU Renewable Energy Directive (RED III, EU 2023/2413) through national implementation legisla- tion adopted in summer 2025. The new rules intro- duce “infrastructure areas” for renewable-energy and grid projects, impose binding time limits on approval procedures, and establish streamlined one-stop shop processes. Renewable generation and associated grid
assets are now treated as matters of overriding public interest. Expansion Targets Germany’s expansion pathway remains one of Europe’s most ambitious. Offshore wind capacity is targeted to rise from roughly 9 GW today to 30 GW by 2030. Solar PV additions exceed 15 GW per year under the Solarpaket I (2024) and auction reforms within the Renewable Energy Act (EEG). Grid Integration and Cost-Sharing Reform The BMWE aims to align renewable deployment with network capacity. Where grid congestion is acute, developers are expected to bear a larger portion of connection and reinforcement costs; conversely, at system-friendly locations, accelerated connection and lower cost contributions are envisaged. This differ- entiated approach is intended to reduce curtailment, optimise system efficiency, and integrate decentral- ised flexibility assets such as storage and demand response. Hydrogen Strategy and Infrastructure Development Germany’s National Hydrogen Strategy, updated in 2023, sets out the ambitious target of 10 GW of domestic electrolysis capacity by 2030 and 95–130 TWh of annual hydrogen demand, with long-term goals of 30–40 GW by 2035–2040. A key element of this strategy is the realisation of a national hydrogen core network (H₂-Kernnetz), planned to be opera- tional as of 2032, connecting industrial clusters, stor- age facilities, and import terminals. To facilitate this development, a dedicated regulatory framework has been implemented that shall ensure the amortisation of investments in the hydrogen core grid and thereby promote private sector participation. The BMWE also supports international import corridors through long- term partnerships in the North Sea, Southern Europe, and the MENA region. Together, these developments demonstrate Germa- ny’s determination to accelerate renewable deploy- ment, modernise grids, and support industrial decar- bonisation while maintaining system stability.
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