Energy companies warn of delay in power plant construction

Electricity - Energy companies warn of delay in power plant construction

The energy industry is warning of the consequences of a delay in the planned construction of hydrogen-capable gas-fired power plants. The head of Germany's third-largest energy company EnBW, Andreas Schell, told "Der Spiegel": "If the power plant strategy does not come soon, Germany will not be able to phase out coal by 2030." Georg Stamatelopoulos, EnBW Board Member for Sustainable Generation Infrastructure, told the German Press Agency: "The calculation is simple: without a power plant strategy, the Energiewende will remain halfway there." The municipal utilities association VKU warned that any further postponement of the power plant strategy already announced for this summer must be avoided.

Stamatelopoulos described the federal government's power plant strategy as elementary. "We need an investment framework for the construction of climate-friendly power plants." Without a corresponding subsidy design, these could not be operated economically because they would only be in use when renewables were unable to deliver.

"You don't build a power plant like this overnight"

The topic is particularly important for Baden-Württemberg, which has a strong industrial base and is therefore energy-hungry. "Due to the imbalance between electricity production and consumption, there will be a lack of secure capacity after the planned coal phase-out, especially in southern Germany," explained Stamatelopoulos. The expansion must be made possible where it is necessary for grid stability.

According to calculations by the transmission system operators, an expansion of 6.5 gigawatts would be necessary in Baden-Württemberg alone by 2030. Nationwide, around 24 gigawatts of capacity would be required. "In concrete terms, that means the construction of 40 to 50 new gas-fired power plants." There is reason to hurry: "It is already ambitious to realize all of these power plants by 2030. You don't build a power plant like this overnight."

Federal government sticks to power plant strategy

A spokeswoman for Federal Minister for Economic Affairs Robert Habeck said on Friday that the power plant strategy is still being developed. It should be presented as soon as possible. With regard to the Karlsruhe budget ruling, she said that everything was connected. It was a far-reaching ruling. The ministry remains committed to the goal of building hydrogen-capable gas-fired power plants.

Following the ruling of the Federal Constitutional Court, there is a large gap in the federal government's finances. Climate protection projects are financed from the affected climate and transformation fund.

The federal government is focusing on renewable energies from wind and solar power to restructure the electricity system - hydrogen-capable gas-fired power plants are to be built for "dark doldrums". Habeck had announced state subsidies that are likely to be in the billions.

Security of supply and investments at risk

TransnetBW, the transmission system operator, believes that a power plant strategy is urgently needed because the existing German power plant fleet is old, prone to faults and causes high emissions. The company wants to incentivize the construction of new plants with a new construction advance and guarantees a certain remuneration based on forecasts for the use of the plants.

In a post on the LinkedIn career network, Group CEO Werner Götz wrote that new power plants must be built by 2030. He is observing the current development with great concern. According to Götz, the ruling by the Federal Constitutional Court will make clever approaches that are cost-effective more relevant. The toolbox must now be filled so that citizens and industry can rely on a secure electricity supply at all times.

EnBW wants to phase out coal-fired power generation in 2028 and is building three new gas-fired power plants that will also generate hydrogen in the future. "But this is a long way from meeting demand," says Stamatelopoulos. CEO Schell told "Der Spiegel": "Without planning security, we will not be able to make any further investment decisions."

Ingbert Liebing, Managing Director of the German Association of Local Utilities (VKU), said that the power plant strategy was the central building block for a successful and efficient energy transition by securing the future power supply with flexibly deployable power plants. "Otherwise, we face a supply shortfall or the coal phase-out cannot take place as planned." Without a power plant strategy, the risk for investors would be too high and investments would initially fail to materialize. In the worst-case scenario, none of the power plants required for 2030 would be connected to the grid.

Communication from the Ministry of Economic Affairs Communication from RWE Contribution from Götz Report from the Federal Network Agency on the topic