Delays expected for german Gas Plant Auctions, Capacity Expansion Faces Hurdles
Germany’s planned expansion of gas-fired power plant capacity to support the country’s growing renewable energy infrastructure is facing potential delays, with auctions unlikely to begin before late 2026, according to legal experts. This timeline stems from the need to revise existing energy laws to accommodate the auction process, a task expected to take considerable time.
The urgency for new capacity stems from the intermittent nature of wind adn solar power,requiring readily available backup generation as germany phases out coal. The current government, led by Chancellor Friedrich Merz, aims to install up to 20 GW of new gas plant capacity – a notable increase from the previous coalition’s plan of around 10 GW. Thes plants are envisioned as potentially transitioning to run on green hydrogen in the future, tho concrete regulations and deadlines for this fuel switch remain undefined.
Holger Kreetz, COO of Uniper, emphasized the lengthy timeframe required for implementation, stating that permitting and construction alone would take at least five years after an auction is held before a new plant becomes operational. He welcomed the government’s consideration of expedited auctions for 5-10 GW of capacity as a necessary first step.
However, challenges extend beyond the auction process itself.Grid operator Amprion’s CEO, Christoph Müller, cautioned that securing the necessary hardware, personnel, suitable locations, and permits will likely slow down the expansion.
Industry experts also suggest hydrogen may prove a more cost-effective solution for reducing emissions than carbon capture and storage (CCS) technologies, especially given the anticipated limited operational hours of these backup plants. Franziska Weiss, Head of Business Development at Siemens Energy Europe, stated that considering capacity factors and projected usage, “hydrogen is the cheaper option.”
The delays are a continuation of issues stemming from the collapse of the previous coalition government, which stalled earlier auction plans.Aurora Energy Research highlighted the complexities involved in the process.
