Environmental groups challenge German gas power plant law at EU

The Deutsche Umwelthilfe (DUH) and Green Planet Energy have filed a formal complaint with the European Commission against Germany’s proposed Electricity Supply Security and Capacity Act (StromVKG). The legislation, spearheaded by Economy Minister Katherina Reiche, aims to incentivize the construction of 12 gigawatts of new capacity to manage power shortages during periods of low renewable output.

Critics argue the law is specifically tailored to favor gas-fired power plants. A long-term criterion in the bill requires plants to be able to provide electricity continuously for ten hours, a requirement that opponents claim effectively excludes alternatives like battery storage and flexible consumers. They contend this violates the principle of technology neutrality and prevents fair competition for the most cost-effective and climate-friendly solutions.

The EU Commission must now determine if the proposed subsidies violate European state aid rules. If approved, the first tenders for these capacity payments are expected to begin in September.