Power plant strategy - EnBW welcomes agreement on a power plant safety law
The Karlsruhe energy company EnBW welcomes the fact that the German federal government has paved the way for a strategy to build new gas power plants, particularly in the "net technological south" of Germany. EnBW CEO Georg Stamatelopoulos evaluated this as good news for the industrial location South Germany. It's about grid stability and costs for purchased electricity. "A effective solution depends on the concrete design now", he said.
The Federal Ministry of Economics had previously announced that a total of 12.5 Gigawatts of power plant capacity and 500 Megawatts of long-term storage capacity would be tendered as planned. The agreement was also coordinated with the European Commission. However, a final regulatory approval from the EU is still pending.
The new gas power plants are supposed to be operated later with hydrogen and serve as "backups" in times of "dark fleets" when there is no wind and no sun. According to the ministry, 5 Gigawatts of new hydrogen-capable gas power plants are supposed to be tendered soon as a contribution to the rapid decarbonization of the power plant park.
High risk of further delays
Stamatelopoulos emphasized: "It's important that potential bidders are made aware of the details of the auction design as soon as possible, as auction participation requires a lot of preparation time and there is time pressure." In addition, clarity is needed on other important details to give investors planning security.
"The second tender round has not yet been scheduled and there is still no decision or agreement on the planned capacity mechanism after 2028", he made clear. "This carries a high risk of further delays." These should be avoided at all costs, as otherwise the coal exit cannot be implemented in the planned framework, let alone ahead of schedule.
EnBW had announced last year that it wanted to exit coal by 2028 at the latest. However, this would depend on the political framework conditions, it was said.
Overall, EnBW considers a build-up of around 20 Gigawatts of so-called dispatchable capacity for Germany to be necessary, as analyses by transmission system operators also showed. The planned ones could therefore only represent the first steps in this direction.
- EnBW Energy Baden-Württemberg, based in Southern Germany's Baden-Württemberg, supports the German Federal Government's strategy to construct new gas-fired power plants, primarily in the "net technological south."
- According to the Federal Ministry of Economics, a total of 12.5 Gigawatts of power plant capacity and 500 Megawatts of long-term storage capacity will be tendered, with coordination from the European Commission.
- These new gas power plants, intended to operate later with hydrogen, will serve as backup sources during periods with no wind or sun, contributing to the rapid decarbonization of the power plant park.
- EnBW CEO Georg Stamatelopoulos urges transparency regarding the auction design details to allow potential bidders adequate preparation time, given the time-sensitive nature of participation.
- The delay in scheduling the second tender round and lack of decision on the planned capacity mechanism after 2028 pose a significant risk, potentially derailing EnBW's coal exit plan by 2028 or even beyond.
- In 2028, EnBW had initially planned to exit coal, but this ultimately relies on favorable political framework conditions, as highlighted by the energy company.
- EnBW deems the establishment of roughly 20 Gigawatts of "dispatchable capacity" necessary for Germany, with the planned power plants serving as initial steps towards this objective, as suggested by analyses from transmission system operators.
