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[BUSINESS] · Germany · 30 sources

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Germany awards 11 contracts for gas-fired power plant capacity

The German Federal Network Agency has awarded 11 contracts in its first tender for long-term electricity capacity to secure the power supply during periods of low renewable energy generation. The awarded projects provide a total capacity of approximately 5,160 megawatts and are intended to be operational by 2031.

Major recipients of the contracts include energy companies RWE and LEAG, with LEAG securing six of the eleven awards. The projects are located across Brandenburg, North Rhine-Westphalia, Saxony, Bavaria, and Baden-Württemberg. While Economy Minister Katherina Reiche welcomed the results as a step toward a secure electricity supply, Brandenburg Premier Dietmar Woidke warned that the expansion could increase electricity bills for consumers.

The annual costs for these projects are expected to exceed 800 million euros, which will be distributed to all electricity consumers via a new levy starting in 2031. The plants are intended to switch to hydrogen operation by 2045 at the latest to support Germany’s climate goals as it phases out coal by 2038.

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Bundesnetzagentur · Dietmar Woidke · Federal Network Agency · Germany · Katherina Reiche · Klaus Müller · Leag · RWE

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