The energy sector has welcomed the German government's agreement with the EU Commission on a new power plant strategy, but is urging swift implementation.
The decision to forgo a fixed date for the conversion of new gas-fired power plants to hydrogen significantly reduces investment risk, said Kerstin Andreae, head of the industry association BDEW, on Friday. She called on the government to pass the necessary legislation before summer if possible. This is a prerequisite for final EU approval and the start of the tender process. The Green Party described the move as an "own goal for climate protection."
The federal government announced on Thursday that, to ensure power supply, it plans to tender new controllable power plant capacities totaling twelve gigawatts in 2026. The new plants are to be operational by 2031 at the latest and will step in when solar and wind power do not generate enough electricity. Since building such plants, which are only used as needed, is hardly profitable for investors, they are expected to require billions in subsidies. The government did not specify the cost estimate. As the state funding constitutes aid, it still requires final approval from the EU Commission.
Of the twelve gigawatts, ten are intended for plants such as gas-fired power stations that can deliver electricity continuously over longer periods. Two gigawatts will be awarded with a technology-neutral approach. All new gas-fired power plants must be designed from the outset for conversion to hydrogen and must be fully climate-neutral by 2045 at the latest. To accelerate the transition, a phased plan will introduce incentives for earlier conversion to hydrogen starting in 2027.
Andreae called the agreement a decisive signal for Germany as a business location. The Green Party criticized the government's plans. "The late date for switching to green hydrogen prolongs our dependence on fossil gas," their energy expert Michael Kellner told Reuters news agency. "It is also an own goal for climate protection."
According to the government, the new power plants are necessary to ensure supply security following the nuclear phase-out and during the gradual coal exit. They are intended to serve as a flexible reserve to balance out the fluctuating feed-in from renewable energies.
(Report by Holger Hansen, edited by Myria Mildenberger. For inquiries, please contact our editorial staff at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
