Key to the future of the Energiewende: support for building new power plants
Key to the future of the Energiewende: support for building new power plants

Author(s): Michał Kędzierski
Subject(s): National Economy, Energy and Environmental Studies
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: SPD-Greens-FDP coalition
Summary/Abstract: It took many weeks of negotiations for the leaders of the SPD-Greens-FDP coalition to reach a compromise on the strategy for building new power plants, which are intended to complement renewable energy sources (RESs) and enable the final phase-out of coal. The first step in this direction is to provide financial support for investments in gas power plants with a total capacity of 10 GW which can be transitioned to hydrogen, followed by the development of a capacity market concept, which is expected to come into effect no later than 2028. The agreement is quite general in nature, but nevertheless it marks a political breakthrough. However, many decisions on the key details will still have to be made in the future, which means that tough negotiations within the coalition must be undertaken, and the entire mechanism will still need to be approved by the European Commission (EC). The scale of support for the construction of new power plants, which is much smaller than originally envisaged, means that Germany can no longer be expected to phase out coal by 2030. Nevertheless, this is a top-priority initiative in Germany’s energy policy in this parliamentary term, and failure to implement it will prevent the process of the Energiewende from continuing.

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