Negotiations between the European Commission and the German government regarding energy infrastructure strategy are nearing a resolution, revealing a significant divergence in ambitions concerning the approval of new natural gas power plants. According to sources within the industry, reported by “Der Spiegel”, the Commission intends to authorize considerably fewer new facilities than initially advocated for by German Minister for Economic Affairs, Katheine Reiche (CDU).
The tentative agreement specifies a cap of 12 gigawatts (GW) for new controllable capacity installations by 2031, largely comprising natural gas power plants. The necessary tender processes for these projects are anticipated to commence later this year. Alongside this, a capacity mechanism, potentially valued at 29 GW, is being planned. This mechanism will encompass a wide range of controllable resources, extending beyond gas, to include battery storage, biogas facilities and even industrial facilities willing to curtail production during periods of energy scarcity.
The apparent compromise, expected to be formally announced shortly, represents a setback for Minister Reiche, who had reportedly sought to negotiate for at least 20 GW of new natural gas capacity with the European Commission. This ambition stemmed from the German government’s desire to bolster protection against prolonged periods of low renewable energy generation – often referred to as “dark doldrums”. These gaps in supply necessitate reliable, dispatchable power sources.
Currently, Germany possesses approximately 90 GW of secured power generation capacity, encompassing a mix of natural gas, hydroelectric and biomass plants, alongside approximately 30 GW of highly polluting coal-fired power plants slated for decommissioning by 2038. The construction of new gas-fired plants was intended, at least in part, to compensate for the planned removal of these coal facilities.
The agreement’s adherence to the 12 GW figure mirrors the initial understanding reached earlier this year between Reiche’s predecessor, Robert Habeck (Green Party) and the Commission. While framed as a necessary transition measure to ensure energy security, critics argue this reliance on natural gas, even as a temporary solution, risks undermining Germany’s long-term climate objectives and prolongs dependence on fossil fuels. The reduced capacity compared to Reiche’s ambitions also raises questions about the effectiveness of the strategy in guaranteeing grid stability amidst the rapidly increasing, but often intermittent, influx of renewable energy sources. The precise details and final numbers remain subject to change until the negotiations are formally concluded.
