A calculation by the DIHK intensifies criticism of the Energy Efficiency Act introduced by the “traffic-light” coalition government in November 2023. Germany is required to reduce its final energy consumption to 1,867 terawatt-hours by 2030, as the law mandates a 26.5 percent reduction compared to 2008 levels. By 2045, consumption is slated to drop by as much as 45 percent. Officially, these targets aim to foster climate protection, reduce energy imports, ensure supply security, and lower costs. However, the law caps total consumption regardless of the method of generation. Consequently, the mandate functions as an arbitrary consumption limit and a political target figure rather than a basis for sound energy planning. According to DIHK calculations, economic output would have to fall by nearly nine percent between 2024 and 2030 if current efficiency trends persist and the target is strictly enforced. The Energy Efficiency Act thus acts as a brake on growth for businesses, municipalities, public authorities, and consumers alike.
Rigid energy targets stifle growth
The fundamental flaw lies in the logic of the legislation. If the goal is to reduce CO₂ emissions, regulations should primarily limit emissions. However, the Energy Efficiency Act caps total final energy consumption. Consequently, additional electricity counts against the target even if it comes from wind power, solar energy, or other low-carbon sources.
This equal treatment poses economic challenges. Germany aims to electrify industrial processes, expand the use of heat pumps, boost electric mobility, and operate data centers for AI. However, all of this requires more electricity. Consequently, a blanket consumption cap could stifle the very technologies intended to replace fossil fuels.
DIHK Foresees Serious Consequences for Germany as a Business Location
DIHK President Peter Adrian clearly outlines the potential outcome. “If current efficiency trends continue and the mandated target is strictly adhered to, Germany’s economic output would have to shrink by nearly nine percent by 2030 compared to 2024 levels,” he explained. This statement highlights the conflict between energy consumption and economic performance, effectively turning the regulation into a brake on growth for the country’s business sector.
Germany is already grappling with high energy prices, causing many businesses to invest more cautiously. Some companies are relocating production or exploring new locations. At the same time, the law mandates additional audits, reports, and action plans.
Bureaucracy Burdens Businesses and Data Centers
Energy-intensive companies are required to implement management systems and must evaluate and document energy-saving measures. Businesses with a total final energy consumption exceeding 2.5 gigawatt-hours must also report potential sources of waste heat; this data is submitted to a government platform.
This requirement is particularly problematic for data centers. Germany aims to expand AI capabilities, cloud services, and digital sovereignty—goals that require significantly more electricity. Yet, the law treats this increased demand as a problem.
Consumers Ultimately Foot the Bill
The costs do not stop with companies and public authorities; businesses usually pass on additional expenses through their prices. Municipalities require personnel, expert assessments, and investments. Consequently, the repercussions also affect customers, tenants, taxpayers, and consumers.
This fundamental flaw is also evident in the realm of clean energy. Increased wind power, solar energy, storage capacity, and grid infrastructure could reduce emissions. However, the legislation fails to adequately reward this outcome. A rigid cap on consumption can stifle growth, even though additional clean energy would benefit climate policy goals.
Germany Needs Energy Planning, Not the Management of Scarcity
Efficiency makes sense when it lowers costs and benefits from technological advancements. It becomes dangerous, however, when the state restricts production and digitalization through consumption caps. In such cases, managing scarcity replaces genuine energy policy.
Germany does not need an abstract consumption curve. The country needs affordable energy, secure grids, and reliable investment conditions. Policies supporting industry and digitalization must realistically assess energy demand. Otherwise, the Energy Efficiency Act will remain a second brake on growth—alongside high energy prices. (KOB)