Plans by Germany’s Minister for Economic Affairs, Katherina Reiche (CDU), to incentivize the construction of new gas-fired power plants are facing internal resistance and raising concerns about rising energy costs.
Thomas Heilmann, Chairman of the KlimaUnion, a group comprising CDU and CSU members committed to ambitious climate protection goals, voiced criticism in an interview with “Handelsblatt”. Heilmann warned that subsidies for new gas power plants could drive up electricity prices, citing increasing reliance on gas prices to dictate the overall electricity market. He argued for allowing market forces to reward flexibility and innovation, rather than relying on state-directed planning that can hinder technological advancement.
The KlimaUnion’s critique is supported by a forthcoming study commissioned from the energy consultancy Conenergy. Details released to “Handelsblatt” indicate the study acknowledges the potential of gas-fired power plants to provide stability during periods of low renewable energy output. However, the study concludes that alternative technologies offer a more effective long-term solution for securing the future energy system. These include battery storage, pumped hydro storage, biomass power plants and facilities utilizing hydrogen. The authors of the study categorize these alternatives as representing an “optimal safeguard” for Germany’s power supply.
