⚡ Germany to Launch Gas Plant Auctions by Year-End

Germany plans to auction at least 5 GW of new gas-fired power plant capacity before 2026, as part of a broader push to secure energy backup amid its coal phase-out. Economy and energy minister Katherina Reiche confirmed the auctions would kick off this year, with a total of up to 20 GW to be installed gradually. The gas plants will act as backup for renewable sources, and Berlin is negotiating with the EU for approval of state support—likely tied to the introduction of a capacity market by 2028. Reiche emphasized that Germany’s energy strategy must also consider economic competitiveness and social justice, not just climate targets. Utility group BDEW welcomed the auction timeline but cautioned that long-term hydrogen compatibility and market mechanisms must follow swiftly. They also warned that ongoing monitoring efforts should not stall the renewables rollout, which remains crucial for lowering electricity prices. The first phase of auctions marks a critical step in Germany’s evolving energy landscape, aiming to balance sustainability with energy security and economic resilience.