The key points of the new Building Modernisation Act (GMG) have been published – what does this mean for the gas transformation?
The GMG key points redefine the future role of gas supply in the building sector. Several GEG requirements will be removed, while the demands for climate‑neutral heating will increase. For gas network operators, now is the right time to recalibrate strategic assumptions.
What is included in the GMG?
1. Abolition of key GEG requirements
Sections §§ 71–71p and § 72 GEG – including the 65% renewable energy requirement, the link to municipal heat planning, and the ban on old oil/gas heating systems – will be deleted.
2. Introduction of the “bio‑staircase” for heating system replacement
New fossil-fuel heating systems must use at least 10% climate‑friendly fuels from 2029. The proportion increases until 2040.
3. Moderate green gas and green heating oil quota for existing buildings
From 2028, a notional quota of 1% will apply, with moderate increases thereafter.
4. Ban on fossil fuels from 2030
From 2030, in line with EU requirements, only zero‑emission buildings may be constructed.
5. Continuation of the Federal Funding for Efficient Buildings (BEG)
Funding programmes – including subsidies for heat pumps – will remain in place at least until 2029.
6. Strengthening of heat networks
Increased federal funding and a mandatory price transparency platform will support network expansion and transformation.
7. Adoption of the Act by 01/07/2026
A draft bill with further specifications – such as detailed design of the bio‑staircase – is expected by Easter.
What does this mean for gas network operators and network users?
Adjustment of the target vision
Rising network charges, high CO₂ prices, and the rapid ramp‑up of heat pumps are accelerating the shift to electric heating. Long‑term partial decommissioning of gas networks in building heat supply therefore remains likely.
Forecast of the green gas ramp‑up
With today’s approx. 1.5% biomethane share, the gas network already exceeds the entry quota. A significant additional ramp‑up is unlikely in the short term.
Re‑planning the transformation path
Technology‑open transition rules and the decoupling from heat planning complicate strategic alignment for network operators and market participants.
The GMG reshapes the assessment of key strategic decisions: decommissioning pathways, provisions, and the parameterisation of KANU 2 must be reassessed.
The target vision remains – the timeline changes.
How we support
We work with gas network operators to develop robust transformation strategies that systematically consider uncertainties and integrate regulatory and technical developments.
Feel free to contact our experts Philipp Heuser and Lorenz Valk.
