The German government has announced its intention to tender for 10 gigawatts (GW) of new gas-fired power station capacity, with a requirement for these plants to be capable of transitioning to clean hydrogen in the future, as reported by Reuters on March 5. This move is part of the country’s broader strategy to shift away from polluting fossil fuels towards more sustainable energy sources. In response, utilities are gearing up to bid for subsidies to cover investment costs, as these gas-fired plants are seen as essential for complementing renewable energy sources during periods of low supply.

Various companies, including IQONY, Uniper , EnBW , LEAG, RWE , Statkraft, and KMW, have expressed interest in participating in the tender or have outlined their plans for hydrogen-ready gas-fired plants. Uniper’s CEO has highlighted the potential of the plan but suggests that a larger scale, around 20-25 GW of new capacity, would be necessary for a significant departure from coal. These developments underscore the industry’s recognition of the importance of transitioning towards cleaner energy sources while ensuring energy security and stability in the grid.

Sources:

https://www.reuters.com/business/energy/german-utilities-bid-new-power-station-capacity-2024-03-05/