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Germany’s Heating Overhaul Stalls as States and Industry Mount Unified Pushback

Removing the 65% renewables requirement, allowing new oil and gas heaters and curbing payouts for curtailed renewables, the federal draft threatens investment, legal clarity and state climate plans.

Overview

  • The federal Gebäudemodernisierungsgesetz (GMG) draft would drop the previous 65% renewables requirement for new heating systems and permit new oil and gas boilers while requiring rising shares of biofuels from 2029.
  • Parliament has delayed the activation of the old 65% rule while the GMG remains unfinished, leaving a temporary regulatory gap and prolonging legal uncertainty for builders and installers.
  • The draft’s proposed Redispatch‑Vorbehalt would deny compensation to renewables operators who are curtailed for grid reasons, and industry groups warn this would weaken project bankability and slow new wind and solar investment.
  • State energy ministers spoke with one voice against the federal plan, calling for continued renewables expansion, a strategic gas reserve and powers to keep stricter local rules as some states and Hamburg’s parliament press for a Länderöffnungsklausel.
  • The Nationaler Normenkontrollrat called the GMG text unclear and impractical, increasing pressure on the government to rewrite the draft and leaving outcomes uncertain for consumers, investors and the country’s 2040 climate targets.