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Renewable energy

Germany's New Energy Policy: A Shift Towards Gas-Fired Power Plants

Strategic Insights

— 1 min read

Germany's new energy policy has been receiving significant attention following the coalition agreement between the CDU/CSU and SPD. One of the key focus areas is the creation of a reliable framework for investments in gas-fired power plants, with the aim of incentivizing the construction of up to 20 GW of capacity by 2030. This development is crucial for maintaining security of supply and grid stability, especially given the ambitious climate targets set by the country, including being carbon-neutral by 2045 and achieving at least 80% of electricity from renewable energies by 2030.

Key Takeaways:

  • The new coalition government has agreed to create a special infrastructure fund to finance the construction of new gas-fired power plants.
  • The government plans to incentivize the construction of up to 20 GW of gas-fired power plant capacity by 2030 as part of a revised power plant strategy.
  • The plans have been praised by the industry, but also scrutinized in detail, with concerns raised about the economic viability of carbon capture and storage (CCS) technology.
  • EnBW, a leading energy company, has expressed willingness to participate in the construction of new gas-fired power plants, but emphasized the need for a regionally managed power plant strategy.
  • The company's CEO, Stamatelopoulos, argued that hydrogen technology is a more viable option for decarbonizing new gas-fired power plant capacities.

Statistics:

  • The share of green electricity in electricity consumption from January to March 2025 was 47%, compared to 56% in the same period in 2024.
  • The first quarter of 2025 saw a 16% decrease in renewable energy production, primarily due to weak winds.
  • The German Association of Energy and Water Industries (BDEW) reported that wind turbines, solar parks, and other renewable plants produced 63.5 billion kilowatt hours of electricity in the first quarter of 2025.
  • The government plans to phase out coal by 2030, which will further emphasize the need for reliable and efficient energy supply.
  • The Power Plant Security Act, which has not yet been passed, provided for tenders for a total of 7 GW of gas-fired power plants, with 2.5 GW planned to be put out to tender at the beginning of 2025.

Sources:

  • German Association of Energy and Water Industries (BDEW)
  • CDU/CSU coalition agreement
  • Interview with EnBW CEO Stamatelopoulos
  • Power Plant Security Act (not yet passed)
  • Coal phase-out timeline

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