When it comes to a power plant strategy, the federal government was able to agree on the essential elements. It has also announced that it will further advance the electricity market design as well as a market-based, technology-open capacity mechanism.
In the short term, the first step is to put 10 gigawatts of gas power plant capacity out to tender, which will be converted to hydrogen from 2035. Kerstin Maria Rippel, General Manager of the Steel Association, commented on this:
“We welcome the agreement between the coalition partners on the long-awaited power plant strategy and the pragmatic proposal to put 10 gigawatts of gas power plant capacity out to tender at short notice.
This is an important building block that takes our security of supply into account - and thus paves the way to climate neutrality while at the same time securing the industrial location.
In addition to the urgently needed expansion of renewable energies, it must be ensured that our steel production can be supplied with sufficient electricity even in times when there is little wind or sun - and at competitive prices.
With the additional planned capacity mechanism, care must therefore be taken to ensure that the planned market economy and technology-open design is used to keep electricity prices under control.”