German law on new gas power plants hangs in balance ahead of snap election

A planned law to ensure new gas power plants can be built in Germany to secure electricity supply as the country phases out coal power continues to hang in the balance after the government coalition break-up. The economy ministry (BMWK) has now presented a new draft of the Power Plant Security Act, which could enable the country to hold tenders for hydrogen-ready gas power plants as early as the first half of 2025.

The draft is now awaiting approval by other ministries ahead of a full cabinet decision, set for 4 December. The goal is to then get it through parliament ahead of February's early national elections, Tagesspiegel Background reported. However, lawmakers from the opposition Christian Democratic Union (CDU) – whose support the minority government needs to pass the law – have said they would oppose the bill.

The Power Plant Security Act includes tenders to support the construction of 10.5 gigawatts (GW) of new H2-ready gas-fired power plants and hydrogen power plants. It is meant to lay the groundwork for a secure electricity supply as the share of intermittent renewable power sources increases, with the H2-ready power plants seen as a prerequisite for an earlier coal phase-out ahead of the official 2038 deadline. The economy ministry calculates with costs of 17 billion euros if the law is adopted, Tagesspiegel Background reported.

The energy industry has called for cross-party support for the bill. The construction of H2-ready power plants – "the basis for our future security of supply" – would take several years, so it is essential for tenders to begin next year, said Kerstin Andreae, head of energy industry association BDEW. Corinna Enders, head of the German Energy Agency (dena), also said the construction of the plants was particularly important and appealed to the CDU opposition to approve the bill before the new elections. "We urgently need to start the tenders for these power plants," Enders told Table.Media.

However, Jens Spahn, deputy head of the opposition CDU/CSU parliamentary group, told Zeit Online he did not want to negotiate the law, arguing it "does not go far enough."