Urgent Moves for New Gas Power Plants: Germany Steps Up Amid EU Negotiations
Commission initiates bidding process for building new gas-fired power plants
Fed Min of Economy, Katherina Reiche, is pushing to kickstart new gas power plant construction, with the first tenders hoped for by year's end. In efforts to secure EU approval, negotiations with the EU Commission are underway.
"We aim to get the ball rolling by year-end," Reiche stated at BDEW's industry congress. Initially, power plants with a capacity of 5-10 GW are expected to be tendered, though final agreements with the Commission on state aid will determine the exact numbers.
These new gas power plants aim to counterbalance fluctuations in renewable energy sources such as wind and solar during unfavorable weather conditions. Reiche emphasized that gas power plants offer quick and cost-efficient solutions, as they are easier and cheaper to obtain than other alternatives.
In line with the coalition agreement, plans call for a gas power plant capacity increase of up to 20 GW, designed to complement the intermittent power output from green energy sources. However, the exact role of hydrogen conversions remains uncertain.
Environmental groups, meanwhile, are pressing for funds from the government's new special fund to be allocated solely for climate protection projects, rather than gas power plants. Their proposed investments include railway infrastructure, public transport, cycling infrastructure, energy-efficient building renovations, municipal heat networks, and natural climate protection efforts.
Behind the Headlines:
- The proposed gas power plants are part of Germany's broader strategy to ensure energy security during periods of low renewable output (e.g., dark winter months).
- The EU's REPowerEU plan, focusing on phasing out Russian gas imports, provides a context for these energy security endeavors.
- Tendering processes may involve incentives or subsidies to attract bids, while the EU remains headlined by renewable energy initiatives like the Affordable Energy Action Plan and the European Grid Package.
- The expansion of gas power plants presents a tug-of-war between immediate energy security demands and long-term renewable transition goals, as gas acts as a stepping stone towards hydrogen.
- EU's continued investment in renewable energy, faced with societal resistance to the role of gas in the energy mix, reflects ongoing debates balancing short-term needs against long-term sustainability.
[1] REPowerEU: https://ec.europa.eu/info/strategy/priorsities-2020-2024/europe-building-back-better-after-covid-19/repowereu_en
[2] Power Plant Security Act and gas power plant tender: https://www.ara-log.de/news/kabinettsbeschlusse-und-gesetze/grund-energiewende-unsicherheiten-dynamisch-ist-es-notwendig-zu-reaktionieren.11730.0.html
[3] 20 GW gas power plant capacity: https://www.tagesschau.de/wirtschaft/energie-mindestanlagekapazitaet-101.html
[4] EU initiatives on renewable energy: https://ec.europa.eu/energy/en/topics/renewables/electricity
[5] Resistance to new gas projects: https://www.cleanenergy wireless.net/news/dutch-protest-plans-new-gas-fired-power-plants
- The federal government could consider incorporating vocational training programs within the finance and investing sectors, as part of the community policy, to support the maintenance and development of the new gas power plants and the transition towards hydrogen conversion.
- Environmental business groups may propose that a portion of the funds from the government's special fund be invested in vocational training for renewable energy technologies, such as solar and wind, as alternatives to gas power plants, thus fostering a more sustainable future.
