What German Economy Minister Katherina Reiche Surprisingly Demands at an Oil and Gas Conference in the USA

Münster (Germany) - The German federal government’s shift in energy policy is becoming increasingly obvious. This is particularly clear following Katherina Reiche’s appearance at a major oil and gas conference in the U.S.

Reiche clearly prioritizes fossil fuels such as oil and gas in her energy policy, as well as nuclear power and nuclear fusion. While climate protection remains part of the agenda, it apparently is intended to take a back seat to the interests of certain parts of the economy. Despite contrary assurances, part of the plan seems to be slowing the expansion of renewable energies in Germany.

U.S. Energy Conference: What Katherina Reiche Surprisingly Demands in Texas

At the major CERAWeek energy conference in the U.S. state of Texas, Reiche questioned key elements of European climate policy. According to Politico, she suggested that the European Union should handle its existing climate neutrality goals for 2050 more “flexibly.” Specifically, she proposed allowing a deviation of up to ten percent from the so-called net-zero target.

This marks a departure from a core EU consensus. Since 2019, the European Union has officially pursued the goal of becoming climate-neutral by 2050. Interim targets aim to drastically reduce emissions by 2040.

According to Politico, Reiche argues that overly rigid requirements could cause economic harm. Europe must “regain flexibility” and accept incomplete solutions. Otherwise, it risks losing energy-intensive industries.

At the heart of her argument is her priority: economic growth over climate goals. Sustainability is important, but it must not come at the expense of the economy.

Additionally, at the U.S. conference, Reiche advocated for increased use of domestic fossil resources. Germany should develop gas reserves in the North Sea rather than leaving them untapped, she argued.

Energy Policy Orientation: Katherina Reiche on Nuclear Power and Nuclear Fusion

While the U.S. energy conference focused primarily on fossil fuels, a shift in nuclear energy policy is also emerging. Reiche supports reintroducing nuclear energy more strongly into the energy mix, at least from a European perspective.

Although Germany currently has no plans to return to conventional nuclear power plants, Reiche has repeatedly emphasized the importance of “new” nuclear technologies. These include primarily small modular reactors (SMRs) and nuclear fusion.

The minister sees these technologies as a way to combine energy security, competitiveness, and climate protection. At the same time, she stresses that Europe must not fall behind technologically.

Energy Policy in Germany: How Katherina Reiche Intends to Slow the Expansion of Renewables

At the same time, Reiche has initiated several measures in Germany that could slow the expansion of renewable energies. According to the International Economic Forum for Renewable Energies (IWR), it is clear that a course change is apparently underway – though the extent remains uncertain.

“In the past, there have been various political levers to slow down and control renewable energies. These include the abrupt cuts to solar subsidies in 2012 or the high approval hurdles for wind turbines in 2017,” said Dr. Norbert Allnoch, head of IWR. He added, “What’s new is that the power grid is now being used as a control instrument and a bottleneck to deliberately slow down renewable energy growth.”

Under the “Grid Package,” network operators will presumably no longer have to prioritize the expansion of renewable energies. This means, conversely, that grid expansion will follow its own planning criteria and will no longer primarily result from the expansion of renewable plants.

The planned capping of fixed feed-in tariffs for small rooftop installations, as well as the priority for large-scale PV projects, are also part of this agenda. Decentralized solar projects lose attractiveness, weakening the energy transition’s character as a “participatory project for citizens.”

The energy policy shift also includes building state-subsidized gas power plants. Later in 2026, gas power plants with a total capacity of 12 GW are planned to be put out to tender. The funds are to come from the Climate and Transformation Fund (KTF).

Allnoch added, “It is still unclear whether the funding will be provided through capacity mechanisms and whether the gas plants will mainly serve as reserve power plants, or whether they will participate regularly in the electricity market, earn money, and also receive additional state subsidies.”

Source: IWR Online, 24 Mar 2026