After long discussions, the federal government has agreed on a strategy for building hydrogen-capable gas power plants in Germany. Federal Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) have agreed on the essential elements of a power plant strategy as well as specifications for further projects, according to a joint statement.
The power plant strategy is intended to create the framework for investments in modern, highly flexible and climate-friendly power plants that will be able to run on hydrogen in the future. In the short term, new gas power plants with a capacity of up to four times 2.5 gigawatts are to be put out to tender. The funding is to be financed from the Climate and Transformation Fund, a special federal fund. According to coalition circles, the costs are around 16 billion euros over the next 20 years.
In a few years, operators could be rewarded for maintaining power plant capacity via a so-called capacity mechanism. Concepts should now be developed for this, and there should be a political agreement within the federal government by the summer.
In addition, planning and approval procedures for the power plants included in the power plant strategy are to be accelerated. The agreement reached on the power plant strategy will be discussed with the EU Commission in Brussels.
The new power plants will first run on natural gas and then on hydrogen
The agreement was preceded by long negotiations within the federal government, especially between Scholz, Habeck and Lindner. The energy industry has been waiting for a long time for a strategy to build hydrogen-capable gas power plants by 2030. Renewable plants should be massively expanded by then. The federal government’s goal is: 80 percent of electricity should come from renewable energy sources by 2030. Currently it is just over half.
New gas power plants could primarily replace coal-fired power plants. They will initially be operated with natural gas, but then increasingly with climate-friendly hydrogen. In “dark lulls” – when there is no wind and no sun shining – gas power plants could step in to cover electricity demand. Energy companies have so far been reluctant to invest because the new power plants are not profitable. Habeck has so far spoken out in favor of government funding that could amount to billions. FDP politicians pointed out the high costs of funding and called for “technology openness”.