Germany wants to build 25 GW of gas-fired power plants through auctions by 2030

Economy Minister Robert Habeck said Germany will use auctions to ensure the construction of new gas-fired power plants. These will be essential to ensure electricity supplies when renewable energy sources do not generate enough electricity.

"We will build the power plants we will need for periods when wind and sun do not provide enough electricity,"the minister said while presenting a report on the country’s progress towards climate neutrality.

Germany plans to significantly increase the installed capacity of wind and solar power plants to meet its target of generating 80 % of its electricity from renewable energy sources by 2030. At the same time, coal-fired and nuclear power plants will be gradually phased out. Gas-fired power plants, which can later also run on hydrogen, therefore play a central role as backup sources.

In their coalition agreement, the governing parties said several new gas-fired units would be needed to supplement electricity generation from renewable energy sources, but German energy companies have long warned that they have little incentive to build them. Building and operating a new power plant that would be profitable under market conditions for only a small part of the year is not economically viable.