Huge success for Křetínský's company: LEAG wins contracts worth billions of euros in Germany

The German government today awarded 11 contracts worth around 12 billion euros (over CZK 290 billion) for the construction of new gas-fired power plants or the conversion of existing coal-fired plants to gas. Seven contracts went to German energy company LEAG, which is part of billionaire Daniel Křetínský's EP Group, Reuters and DPA reported.

The total generating capacity of the 11 contracts awarded is 5.16 gigawatts. The capacity covered by LEAG's contracts is around three gigawatts. LEAG said most of the new power plants would be built at existing plant sites in eastern Germany. This will reduce costs and shorten construction time, according to the company, Reuters reported.

"Winning contracts for seven new power plant units in a single tender is a major success," the company's chief executive Adi Roesch said.

"We are building new, modern power plants of the future at existing plant sites, saving resources and creating long-term prospects," he added.

Klaus Müller, head of the Federal Network Agency, said competition in the tender was fierce, resulting in relatively low contract prices. "The tender result is an important first step towards ensuring a long-term and cost-effective electricity supply," he added.

The German government is planning two more rounds of tenders for new gas-fired power plants. The total value of the contracts is expected to reach up to 35.2 billion euros, Reuters reported. According to Reuters, the gas-fired plants will receive subsidies to ensure they are available during periods when electricity supplies from other sources, such as solar and wind power plants, are low.