Shaping the Buildings Energy Act: Stakeholder Influence and the Role of Hydrogen in the German Heating Transition

Abstract

To reduce natural gas consumption and achieve climate neutrality by 2050, Germany must transform its heating system. The Buildings Energy Act (GEG) from 2023 marks a critical step in this heating transition. Aside from direct electrification and biomass, it states that low carbon hydrogen can be used to decarbonise individual building heating. However, research often challenges the feasibility of hydrogen for this purpose, due to high costs, inefficiencies, and hydrogen scarcity. When laws contradict science, social and political factors are likely at play. Through a qualitative single-case study, we investigate how stakeholders in the German heating sector influenced the inclusion of hydrogen as an option for individual building heating in the GEG. Previous literature has addressed associated topics such as power dynamics in the energy transition, or discourse and stakeholder mapping in the hydrogen sector. However, few have studied the German heating sector and the GEG from a power perspective. Our analysis employs discourse network analysis, content analysis, and process tracing, based on semi-structured interviews and secondary texts. The study is theoretically informed by Lukes’ Three Faces of Power, supplemented by additional power scholars. We find that gas actors have driven the inclusion of hydrogen for building heating in the GEG. Initially lacking discursive power due to perceived low legitimacy with the Green Party, gas actors compensated by leveraging instrumental power through lobbying, ultimately building credibility with policymakers. Our findings suggest that instrumental power had a relatively bigger impact on the policy process compared to structural and discursive power. It also proposes that these three dimensions of power are interconnected rather than isolated. The study reveals significant limitations in the GEG's consultation process and suggest a more structured and equitable approach to ensure fair consideration of all impacted parties.