Dear readers,
The year 2025 will be at least as dynamic as the years before when it comes to energy law. It remains unclear what impact the upcoming elections in February and the changing geopolitical situation will have on the direction and objectives in the energy sector. The following is a brief overview of what is already known to be introduced in 2025.
1. Obligation for meter operators to install smart metering systems pursuant to section 34 (2) sentence 1 no. 1 of the German Metering Point Operation Act (Messstellenbetriebsgesetz, MsbG)
As from 2025, every household may receive a digital electricity meter. Essentially anyone with an annual electricity consumption of more than 6,000 kWh, solar systems with an output of more than 7 kW and/or controllable heat pumps is eligible. Starting at the beginning of this year, metering point operators are obliged to equip, on request, metering points and submeters installed in a customer system and not requiring accounting with 15-minute smart metering systems (pursuant to section 2 no. 7 MsbG) earlier, but beware, the term 'customer system' has been fundamentally called into question by the ECJ ruling of 28 November 2024 (Case C-293/23) (you can read about this in our article in the December 2024 issue of the newsletter Focus on the Public Sector (available in German only)). The installation of smart meters used to be voluntary but is now mandatory within four months of being commissioned. This is another step in the 'smart meter rollout' announced by the legislature, which has made only slow progress in recent years.
2. Obligation for electricity suppliers to offer dynamic electricity prices pursuant to section 41a (2) of the German Energy Industry Act (Energiewirtschaftsgesetz, EnWG)
From 1 January 2025, all electricity suppliers will be obliged to offer end consumers electricity contracts with dynamic electricity rates, provided these consumers have smart meters. According to section 3 no. 31d EnWG, dynamic rates mean they that reflect the price fluctuations of the energy exchange. This allows end consumers to be flexible in their consumption of electricity and optimise it to coincide with periods of low electricity prices. Electricity suppliers must furthermore comprehensively inform their customers about the dynamic rates and offer information about the installation of a smart metering system.
3. Obligation for electricity suppliers to guarantee a change of supplier within 24 hours
Under ruling BK6-22-024 of the German Federal Network Agency (Bundesnetzagentur), electricity suppliers will be obliged as of 4 April 2025 to guarantee an accelerated change of supplier within a maximum of 24 hours on every working day if end consumers wish to do so.
4. Obligation for system operators to guarantee marking and lighting of wind turbines at night pursuant to section 9 (8) of the German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG)
From 1 January 2025, onshore wind turbines must be equipped with aircraft detection lighting systems (ADLS) where this is required under aviation law. If system operators fail to comply with this obligation, they will have to make payments to the grid operator in accordance with section 52 (1) no. 3 EEG.
5. Increased CO2 price for end consumers pursuant to section 10 (2) sentence 2 no. 5 of the German Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz, BEHG)
On 1 January 2025, the price per emissions certificate in national emissions trading will increase to EUR 55. With the higher CO2 price, the legislature wants provide incentives for end consumers to switch to low-CO2 or even CO2-free technologies. This marks the beginning of the last year of the fixed-price phase, in which the price of an emissions certificate is determined by law. From 2026, the price of an emissions certificate will be determined by auction, similar to the European emissions certificate trading system. A price corridor will limit the price of a certificate to range between EUR 55 and a maximum of EUR 65 in 2026.
6. Obligations for owners of combustion plants after the expiry of the transitional provisions in the German Federal Immission Control Regulation (Bundesimmissionsschutzverordnung)
The Federal Immission Control Regulation stipulates that owners of furnaces burning wood, coal and other solid fuels are obliged to adhere to specified carbon monoxide and particulate matter limits. The last transition period for compliance with these requirements ended on 31 December 2024. Owners of a furnace not meeting these legal requirements must make the necessary adjustments or take the furnace out of operation if these requirements cannot be met. Anyone who fails to do so will face fines.
7. Obligations for developers and owners regarding building automation pursuant to section 71a of the German Building Energy Act (Gebäudeenergiegesetz, GEG)
If a heating system or a combined heating or air conditioning and ventilation system with a rated output of more than 290 kilowatts is installed in a non-residential building, this non-residential building must be equipped with a building automation and control system as from 1 January 2025. The requirements for this digital energy monitoring technology are listed in section 71a (2) and (3) GEG. According to the legislature, building automation helps adjust operating times or prevents simultaneous heating and cooling. This Act transposes Article 14 (4) and Article 15 (4) of Directive (EU) 2024/1275 (EPBD).
8. Expiry of the innovation clause (section 103 GEG)
The innovation clause allows owners and developers to apply (usually with the lowest building authority and until 31 December 2025) for an exemption from certain requirements of the GEG on the basis of using innovative solutions. For the time being, this technology-neutral approach has been extended until the end of the year. Given the current, uncertain political situation, however, especially with regard to the GEG, it is impossible to say whether a further extension can be expected. It could therefore be worthwhile for project developers to start implementing innovative projects as early as 2025 and apply for an exemption under section 103 GEG.
9. Waste heat reporting obligation for companies under section 17 (2) of the German Energy Efficiency Act (Energieeffizienzgesetz , EnEfG)
Companies must report data on their waste heat quantities to the Federal Agency for Energy Efficiency (Bundesstelle für Energieeffizienz) for the first time on or before 1 January 2025. From this year onwards, such reports must be submitted every year on or before 31 March. Therefore, companies who report data on their waste heat quantities for the first time in 2025, will have to file two reports in 2025. This obligation applies to companies with a total annual energy consumption of more than 2.5 GWh within the past three years. Anyone who fails to comply with this reporting obligation could be liable to a fine, see section 19 (1) no. 9 EnEfG. This reporting obligation is meant to support mainly district heating network operators and other heat consumers: they will be able to view potential sources of waste heat in order to leverage any efficiency potential. Companies must reuse their waste heat to save energy to the extent this is possible and reasonable.
10. Rulings of the German Federal Network Agency; industrial grid charges and grid capacity
With its key issues paper of 24 July 2024, the Federal Network Agency (Bundesnetzagentur, BNetzA) initiated a reform of industrial grid fees. A new ruling of the BNetzA is meant to create new incentives for electricity-intensive companies. To make this possible, the band load privilege is to be abolished. The purpose of the band load privilege is to provide incentives for electricity-intensive end consumers to keep constant base loads.
In addition, the BNetzA has initiated a procedure to create uniform standards for the allocation of grid capacity above low-voltage level. The relevant consultation process ended on 31 December 2024, meaning that the BNetzA is expected to make a decision in 2025.
Dr Malaika Ahlers
Anton Buro
