The Federal Network Agency has announced that it has awarded subsidy supplements through its first bidding round for long-term capacity, supporting the construction of new reserve power plants. The agency reported on Tuesday that the initial tender volume requested totaled 4,500 reduced megawatt (rMW). Throughout the bidding period, 41 proposals were received, amounting to a total offered volume of roughly 11,958 rMW. Seven submissions were subsequently ruled ineligible because, for example, they failed to provide legally mandatory information or necessary supporting documentation.
After the evaluation, the Federal Network Agency granted subsidies to eleven bids, resulting in a total awarded capacity of approximately 5,160 rMW. This figure exceeds the original tender volume of 4,500 rMW because one of the submitted bids surpassed the target capacity and was nevertheless awarded funding.
The largest allocation of capacity goes to projects located in North Rhine-Westphalia (approximately 2,118 rMW across three awards), followed by Brandenburg (around 1,819 rMW in four awards). Other significant allocations include Saxony (around 910 rMW in two awards), Bavaria (around 269 rMW for one award), and Baden-Württemberg (around 45 rMW for one award). The average weighted subsidy value established across the winners is 155,296 Euros per rMW per year, which is below the maximum allowable price of 244,000 Euros.
Klaus Müller, President of the Federal Network Agency, stated that the tender saw intense competition from various technologies, including both conventional power plants and energy storage systems. He noted that this strong competition resulted in relatively low subsidy values. He added that the results represent a critical first step toward ensuring a long-term and cost-effective supply of electricity, and that the regional distribution of the awards will contribute to the secure operation of the grid in the future.
These new facilities are intended to act as emergency backups starting from 2031 if renewable energy sources fail to meet electricity demand.
