Germany Reaches EU Deal to Tender 12 GW of Gas-Fired Power Plants
New plants will ensure grid stability during the coal phase-out and must be hydrogen-ready by 2045.
Emphasis on Stable Production and Hydrogen
Germany announced on Thursday it has reached a general agreement with the European Commission on a strategy to build new power plants, paving the way for tenders for 12 gigawatts (GW) of new capacity in 2026, primarily centered on natural gas facilities.
The deal is considered pivotal for the country’s security of supply as it proceeds with the gradual phase-out of its coal-fired plants. According to the Ministry of Economy, the tenders are part of a broader plan to ensure stable and sufficient electricity generation in the coming years.
“With the short-term tenders, we are laying the foundations for a secure electricity supply in the future and, by extension, for the competitiveness of our industry,” said Economy Minister, Katerina Reiche.
Of the 12 GW of new capacity, 10 GW must be capable of operating for extended periods to guarantee a continuous supply of electricity. The ministry clarified that this mainly, but not exclusively, concerns natural gas-fired units.
The new power stations are expected to become operational in 2031 and must be capable of running on hydrogen by 2045 at the latest. This target is directly linked to Germany’s commitment to achieve climate neutrality in the same year.
State Aid Approval Pending
Berlin clarified that the state aid procedures have not yet been finalized and the strategy will require final approval from the European Commission. This development remains a critical step for the plan’s implementation.
Meanwhile, the country’s largest energy companies, including RWE, Uniper, and EnBW, are awaiting the final details to begin construction, contingent on a regulatory framework that ensures sustainable operation.
Uniper CEO, Michael Lewis, described the agreement as an “urgent and necessary step” toward a more realistic and cost-effective energy transition. He noted that operators will have greater flexibility regarding the timing of their switch to hydrogen.
The Ministry of Economy also indicated that additional tenders for new capacity are planned for 2027 and 2029/2030, on the condition that these plants are also available by 2031.
