Chancellor Angela Merkel and the CDU are set to win a plurality of seats at the Germanelection, meaning Germany will continue to pursue the Energiewende and growth in renewables-basedelectricity supply. As such, we anticipate low wholesale electricity prices will continue to squeeze marginsfor conventional power producers and push thermal generation capacity out of the electricity mix.
We believe Angela Merkel's ruling centre-right Christian Democratic Union (CDU) is on track to win aplurality of seats in the Bundestag in the September 24 German Federal elections. As such, there is littleto indicate the next German government will diverge substantially from the energy policies implementedunder Chancellor Merkel over previous parliaments. Germany will continue to register strong growth inrenewables-based electricity generation and will drive ahead with the Energiewende - the transition to aneconomy powered by renewable energy.