energy matters

After a number of years of consolidation, Germany is likely to become again one of the more active European energy markets in terms of new investments and M&A. On the one hand, the German energy industry is expected to invest heavily in power generation and in transmission grids. Outdated coal power plants and decommissioned nuclear plants require replacement over the next two decades to make way for efficient and low-emission electricity generation. On the other hand, recent major changes to the regulatory environment will invoke the creation of a new type of regulated energy services provider and the continued state-aided promotion of renewable energy will also lead to further changes in electricity generation, grid topologies and technologies. In this article Jochen Terpitz of Norton Rose’s Frankfurt office provides his thoughts on Germany’s energy market in the year ahead.