Germany Faces Costly Environmental Risks
Economy / Finance

Germany Faces Costly Environmental Risks

The German Environment Agency (UBA) has voiced strong criticism of plans by Federal Minister for Economic Affairs, Katherina Reiche (CDU), regarding the construction of new gas-fired power plants. UBA President Dirk Messner cautioned against what he described as a potential shift towards increased carbon emissions, stating that prioritizing gas capacity while neglecting investments in grid infrastructure and energy storage could lead to a “re-carbonization” of the energy system.

The concerns were raised in response to Minister Reiche’s announcement that new gas-fired power plants, with a combined capacity of 5 to 10 gigawatts, would be tendered by the end of the year. Notably, the plans do not currently mandate the adaptability of these plants to run on green hydrogen.

Messner emphasized the need for gas as a fallback option when renewable energy sources – solar and wind – are insufficient and storage capacity is lacking. However, he warned against a reversal of progress in decarbonization efforts, stressing the importance of avoiding “the construction of new fossil energy infrastructure that cannot be retrofitted to run on green hydrogen”. He argued that flexibility and hydrogen compatibility should be a mandatory condition for new power plant tenders, aligning the system with renewable energy sources.

Beyond the issue of hydrogen compatibility, Messner expressed worry about the slow pace of progress in transitioning to hydrogen and developing the necessary infrastructure. He specifically called for increased investment in energy storage capacity, urging for the release of concrete figures and timelines related to this crucial area.