Rethinking Long-Term Supply: How Germany Can Maintain Secure and Affordable Energy

• New study reveals: Germany needs new instruments to ensure a resilient energy supply in the long term.
• Uniper CEO Michael Lewis: "Energy security is not a given – we need reliable strategies for affordable, sustainable, and secure energy imports."
• Kehler: "Energy partnerships must be strategically developed and import strategies underpinned by government measures."

Germany must establish its energy security on a stable foundation for the long term. A new study by the Centre for European Policy (cep) shows that current approaches are insufficient to ensure a crisis-proof, economically viable, and sustainable energy supply. In particular, the H2Global mechanism and the current strategy of broad energy and climate partnerships need further development. The key question remains: how can Germany ensure a secure, sustainable, and affordable energy supply?

Recent geopolitical developments have shown that one-sided dependencies in energy imports leave Germany vulnerable. While the previous federal government presented a hydrogen import strategy, it lacked concrete instruments to minimize economic and geopolitical risks. The study, titled "Energy Security in Germany" and commissioned by the gas and hydrogen industry from the Centre for European Policy, concludes: the new federal government must place a stronger strategic focus on energy security.

"Energy security is not a given. We must now set the right course to ensure long-term affordable, sustainable, and secure energy imports," emphasized Uniper CEO Michael Lewis. At the study's presentation in Berlin, the head of Germany’s largest gas importer added: “This includes forward-looking energy foreign policy and reliable import strategies. We must focus on how Germany can continue to be reliably supplied with energy – with a market-based approach that avoids unnecessary complexity and regulatory uncertainty.”

Avoiding Dependencies, Strengthening Energy Security

The study's authors recommend securing gas supply through long-term contracts. Flexible and competitive contract models with strategic partners are essential to minimize market risks and ensure price stability. Examples from Japan and South Korea show that secure LNG supply does not have to result in high prices for consumers and industry – quite the opposite. Long-term contracts there have enabled a price level below that in Germany.

Overall, the study calls for the strategic advancement of energy partnerships. One thing is clear: all current energy transition scenarios continue to assume a significant share of imported energy. So far, energy and climate partnerships have primarily been motivated by development policy. In the future, they should focus more on building resilient supply chains and a diversified energy supply for Germany. According to the study, this also includes establishing long-term supply relationships for green hydrogen.

H2Global: Evolving the Support Mechanism

The H2Global instrument currently plays a key role in coordinating, marketing, and supporting the ramp-up of the international hydrogen economy. In parallel, ways must be found to gradually transfer its coordination and marketing functions to private market players. The study therefore calls for a step-by-step development of the concept: greater flexibility, stronger involvement of private actors, and rapid integration into European market structures.

Targeted Energy Partnerships Instead of a Complexity Trap

"In recent years, energy and climate partnerships have been too closely intertwined. This has unnecessarily complicated negotiations and often distracted from the actual goals," summarized Dr. Timm Kehler, CEO of Zukunft Gas, highlighting the study’s core findings. Instead of numerous non-binding declarations of intent, clear roadmaps are needed for stable and long-term energy trade relations. "This also includes targeted support for building hydrogen production capacities in strategically important partner countries," he added.