Statement by Alexander Ubach-Utermöhl (Managing Director of LAVA ENERGY): Reform of the Building Energy Act (GEG) to the Building Modernization Act (GMG)
Technology openness is right: Professional implementation is crucial
The key points of the new Building Modernisation Act (GMG) give the real estate industry back freedom of decision and planning security over the future heat supply. With the abolition of the blanket 65 percent target for renewable energies, the responsibility lies with the owners again. Technology openness is returning. But this new flexibility is not a carte blanche for “business as usual” with fossil fuels. Anyone who invests in new gas or oil heating systems today without taking into account the long-term dynamics of CO[2] pricing and the legal “bio-staircase” is putting the profitability of their portfolio at risk.
Despite regulatory simplifications, the pressure on property owners to act remains high. The gradual introduction of climate-friendly fuels will make the operation of fossil fuel plants more expensive in the foreseeable future. At the same time, it can be assumed that banks will consistently adhere to climate targets and that the requirements of the EU taxonomy will remain fully valid. Those who are exclusively dependent on fossil fuels today ignore the fact that energy resilience and independence from imports are the backbone of our future economic strength.
The current reform of the GEG and the associated return to openness to technology stand for a realistic and affordable restructuring path. The right approach is to start where it makes economic sense – for example, by using highly efficient hybrid solutions.
In this complex market environment, it becomes clear that the decarbonization of energy supply is not an ideological project, but a smart investment strategy. The new freedom in the boiler room requires professionalization that goes beyond the mere choice of technology. An expert perspective is needed that brings together regulatory requirements, operational profitability and long-term price developments. It is only through this professional management that the new freedom of choice becomes a sustainable investment path for the entire real estate industry.
