Klaus Müller, president of the Bundesnetzagentur, has warned that delays in the tenders for power plant strategy could lead to increased costs. Speaking to the “Power & Policy” podcast from “Politico”, Müller stated that if the scheduled deadlines in May and December are missed, the construction of new power plants will become more expensive. He admitted that highly probable scenarios exist where the projects in 2027 will be costly and potentially less efficient.
Müller identified the expiring product reservations held by power plant investors as a critical problem. He emphasized the necessity of adhering to the tender deadlines because several investors have already signaled that they have pre-ordered specific components needed for the plants, and these pre-order deadlines are set to expire.
According to Müller, the underlying reason is the global demand for controllable energy capacities; with much of the world currently needing to build such infrastructure, ensuring Germany’s supply security is paramount. Therefore, he stressed the need to keep strictly to the timelines set by the federal government.
A delay would also translate into rising costs for both consumers and businesses, as these expenses will eventually be paid via a planned levy. Müller clarified that “the height of this levy depends fundamentally on how cheaply we can secure the tender” adding, “the faster we move now, the more stable and cost-effective the tender participation can be”. He therefore urged for a sense of urgency.
When asked if the components in question were gas turbines, Müller declined to confirm or deny the speculation. However, industry sources noted that companies participating in the preliminary stages of the power plant strategy tenders had already reserved turbines that they plan to purchase if they win the bid.
The draft legislation plans for the first tender round for so-called long-term capacities to begin on September 1, 2026. This applies to plants capable of producing power for at least ten continuous hours. A second round is scheduled for December 22, though this is conditional on the Bundestag approving the draft and the EU Commission giving final authorization.
Müller indicated that the Bundesnetzagentur has already made significant preparatory strides to ensure these deadlines are met, with the first workshops involving market participants scheduled for June.
The term “controllable capacities” encompasses flexible plants, such as gas-fired power stations, large-scale battery storage systems, biogas facilities, hydroelectric plants, and consumption devices like throttled wallboxes, as well as industrial operations that can reduce load during power shortages. Meanwhile, Federal Minister of Economics Katherina Reiche (CDU) is facing criticism for proposing a “long-term criterion” for 10 of the 12 gigawatts scheduled for auction this year, a system that opponents argue favors gas power plants.
