Germany and Israel extend energy partnership for fifth consecutive year

Germany and Israel have extended their bilateral energy cooperation agreement into 2027, marking the fifth consecutive year of the partnership. The agreement was announced on Thursday by Israel’s Energy and Infrastructure Ministry following the signing of a joint work programme with Germany’s Federal Ministry for Economic Affairs and Energy during a visit by a German energy delegation to Israel. The partnership will focus on developing emerging technologies, including geothermal energy and nuclear fusion, as well as cooperation on cleaner fuels and sustainable aviation fuel.

The two countries will also examine the potential for underground natural gas storage and the transportation of natural gas and other low-carbon gases. Further areas of cooperation include improving energy efficiency in data centres, developing electric vehicle charging solutions for apartment buildings, expanding the use of heat pumps and using artificial intelligence to manage electricity grids more efficiently. The renewal comes amid strained relations between Israel and several European countries since the October 7 attacks and the subsequent war in Gaza.

Germany has remained one of Israel’s closest European partners, maintaining strong diplomatic, economic and security ties despite growing criticism of Israel’s military campaign. However, tensions emerged in August 2025 when Chancellor Friedrich Merz suspended some arms exports to Israel over its plans to expand the Gaza offensive. The restrictions were lifted following the Gaza ceasefire.