Gas-fired capacity selected
Germany is investing approximately EUR 12 billion, or about KRW 13.4 trillion, to expand gas-fired generation capacity in response to power supply gaps resulting from coal plant closures. Its first power capacity tender selected projects totaling 5.16 GW, while no battery energy storage system (ESS) projects won contracts.
According to Reuters, Germany's Federal Network Agency (BNetzA) selected 11 projects on November 3, local time. Among the developers, LEAG, part of the Czech EP Group, secured approximately 3 GW, while RWE, Germany's largest power generator, secured 2.12 GW.
The program aims to secure reserve generating capacity that can supply electricity when wind and solar output is insufficient. It includes both the construction of new gas-fired plants and the conversion of existing lignite plants to gas. The selected facilities must be able to supply electricity by 2031 at the latest, with a longer-term switch to hydrogen fuel also under consideration.
Tender requirements and criticism
Supply requirements are cited as a main reason ESS projects failed to win contracts. The tender required facilities to supply 80% of their capacity continuously for at least 10 hours, giving gas-fired plants capable of extended generation an advantage in price competition.
Environmental groups criticized the tender structure as favoring large power generators and fossil fuel generation. Greenpeace warned that support for gas-fired generation lasting 15 years could entrench dependence on fossil fuels.
Further capacity tenders planned
The German government plans to secure a total of 11 to 12 GW of power supply capacity, including this tender. It plans to hold an additional tender in December 2026 and follow-up tenders in 2027. It also plans to expand support to flexibility resources such as large-scale battery ESS and demand management.
Original Korean article: Today Energy
English brief by Korea Wind Intelligence, koreawindintel.com
