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Industry warns: Delay in the construction of new gas-fired power plants?

Sometimes the wind doesn't blow and the sun doesn't shine - and Germany still needs electricity. Modern gas-fired power plants are supposed to help at such times. The industry is urging the government to hurry.

Still under construction in the spring, the new gas-fired power plant in Leipheim, Bavaria, was....aussiedlerbote.de
Still under construction in the spring, the new gas-fired power plant in Leipheim, Bavaria, was connected to the grid in the summer..aussiedlerbote.de

Industry warns: Delay in the construction of new gas-fired power plants?

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." The municipal utilities association VKU warned that any further postponement of the power plant strategy already announced for this summer must be avoided.

A spokeswoman for Economics Minister Robert Habeck said that the power plant strategy was 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 was sticking to its 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. The court had declared the reallocation of coronavirus loans of 60 billion euros from the 2021 budget to the Climate and Transformation Fund null and void. This is used to finance climate protection projects.

Power plants for "dark doldrums"

The German government is relying on renewable energies from wind and solar power to restructure the electricity system - but 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.

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. "Without planning security, we will not be able to make any further investment decisions," Schell told Der Spiegel.

Ingbert Liebing, Managing Director of the Association of Municipal Enterprises (VKU), said that the power plant strategy is the central building block for a successful and efficient energy transition by securing the future power supply with flexible 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.

Together with the energy company RWE, politicians had agreed to phase out coal eight years earlier in 2030 for the Rhineland coalfield. No such agreement has been reached for the coal regions in Brandenburg, Saxony and Saxony-Anhalt.

  1. The Federal Government is considering the role of hydrogen-capable gas-fired power plants in addressing the "dark doldrums" of electricity supply, with Robert Habeck announcing potential billions in subsidies.
  2. The energy industry, including companies like EnBW, is advocating for a swift power plant strategy to ensure investment decisions can be made, as delay could hinder the phase-out of coal by 2030.
  3. With the Federal Constitutional Court ruling nullifying the reallocation of 60 billion euros from the budget to fund climate projects, the Federal Government faces a financial challenge in funding alternative energy sources like alternative energies and electricity from wind and solar power.
  4. The construction of new coal-fired power plants is under scrutiny, as the German government and energy companies like EnBW are shifting focus to hydrogen-capable gas-fired power plants and alternative energies in line with climate goals.
  5. Without a clear power plant strategy, the risk of investment failure and a lack of required power plants for 2030 could hinder Germany's coal phase-out plan, as warned by the Association of Municipal Enterprises (VKU).

Source: www.dpa.com

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