Germany banks on new gas-fired power plants to secure energy supply
The German government has paved the way for the construction of new gas-fired power plants in an effort to plug holes in the electricity supply from renewable energies.
The move, passed by Chancellor Friedrich Merz’s Cabinet on Wednesday, is intended to ensure the security of electricity production in Germany.
“Renewable energies need life insurance, and that is called secure production,” said Energy Minister Katherina Reiche.
The gas-fired power stations are intended to compensate for the phase-out of coal planned for 2038, and to act as a backup in future during periods of low solar and wind energy generation.
By 2030, the share of renewable energy in electricity consumption is set to rise to 80%, up from 53% in the first quarter of 2026.
Sources within the Economy Ministry stated that modelling by the Federal Network Agency showed a supply shortfall would be imminent from 2031 onwards if no measures were taken.
The new plants are due to be built from that year at the latest, and they are also due to be designed to be able to run on hydrogen in a carbon-neutral manner after 2045.
Electricity customers in Germany will face a new levy from 2031 to finance the costs of construction. Reiche said it was not yet possible to say how high the levy would be.
The draft bill is now due to be debated in the Bundestag. The regulations must then be given final approval by the European Commission under state aid rules.
