Federal Environment Minister Carsten Schneider has announced the construction of 2,000 additional wind turbines as part of the 2026 climate protection program. These turbines are slated to be built primarily in southern Germany by 2030. The expansion is expected to generate 12,000 megawatts of additional capacity, save seven billion cubic meters of gas annually, and theoretically replace 90 million tankfuls of fuel. However, the core problem remains: many of the proposed sites are located in regions with low wind speeds in Bavaria and Baden-Württemberg, necessitating substantial subsidies, as the turbines cannot be operated economically in these areas. While Schneider presents the plan as a contribution to greater energy security and reduced import dependency, the German Council of Experts on Climate Change was unable to review key calculations because they were not submitted in a timely manner. This threatens higher costs for taxpayers, raises questions about the project’s economic viability, and could lead to renewed conflict within the coalition government. (welt: 26.03.26)
Schneider pushes for wind farm expansion despite pending review
The expert council on climate issues was unable to assess the nearly 300-page government plan as intended. The Ministry of the Environment submitted the documents too late and in four separate parts. Therefore, a complete review was not possible, even though the council is specifically tasked with this.
The assessment was also critical of the program’s content. The effectiveness of the approximately 90 individual measures could not be reliably demonstrated, and no coherent overall concept was discernible. Information on financing, economic viability, and social consequences was also lacking, while important decisions such as the future heating law were not even mentioned in the program.
High subsidies for less-than-ideal sites
When presenting the program, the minister primarily emphasized the geopolitical rationale. He spoke of “domestic security energy sources” and linked the expansion to the goal of making Germany less dependent on fossil fuel imports. While this sounds politically appealing, it does not replace a sound cost analysis.
These costs are significantly higher in the south. Many sites there are considered grid-friendly but, at the same time, economically unattractive due to weak wind conditions. Therefore, the Renewable Energy Sources Act intervenes with bonuses. For a site quality of 50 percent, the compensation increases 1.55 times, and for 60 percent, it increases 1.42 times. Thus, a kilowatt-hour of electricity normally costs 7.25 cents in subsidies, but in southern Germany it often costs 10.3 to 11.2 cents. Schneider wants to stick with this expensive reference yield model, even though the coalition agreement stipulated a review of precisely this instrument.
Dispute over the most expensive path to the energy transition
The figures from Bavaria illustrate the scale of the problem. According to an analysis by the German Wind and Solar Association (Fachagentur Wind und Solar), the average efficiency factor there is only 55 percent. Furthermore, 76 percent of Bavarian wind turbines are located in low-wind areas and yet still receive substantial subsidies from the federal budget. Fachagentur expert Jürgen Quentin explains: “Larger installations, more complex site development, and lower energy yields lead to higher levelized costs of electricity (LCOE).”
This sends a bad signal to industry. Even without considering grid, storage, and reserve costs, the subsidized wind power from southern Germany is significantly above the price level that many companies consider competitive. Therefore, pressure is mounting on the federal government to focus expansion more on efficiency. Federal Minister for Economic Affairs Katherina Reiche is pursuing a different approach with her “grid package.” In regions with frequent curtailments, new wind farms will no longer receive compensation if they are shut down due to overloaded power lines. This would make northern locations less attractive, while investors might be more inclined to move to the south. This course of action is supported by the President of the Federal Network Agency, Klaus Müller. The coalition is thus heading towards its next fundamental dispute.