Gas Power Plants' Future in Germany's Energy Landscape Uncertain Amid Battery Storage Competition
The future of gas power plants in Germany's energy landscape is uncertain, as they face stiff competition from battery storage systems. The economic viability of gas plants is questionable without state subsidies and the assumption of EU CO2 taxes. The energy transition's success hinges on who prevails in this competition for scarce network connections.
Gas power plants, once crucial for grid stability, are now challenged by battery storage systems. While gas plants provide reliable, controllable power during low renewable generation periods, batteries respond faster to changes and help stabilize the grid. This shift is gradually diminishing the importance of gas plants for grid stability.
Grid operator Tennet fears grid expansion may not accommodate planned gas power plants due to battery storage projects occupying available capacities. As of mid-July 2025, Tennet received 181 project network connection requests, with 131 being battery storage systems. Battery storage is considered crucial for balancing fluctuating renewable energy generation.
The abundance of cheaper storage options threatens the profitability of gas power plants. Determining the priority of connection for different power sources is a significant challenge. The power plant network connection ordinance (KraftNAV) from 2007 may not adequately address current demands, including battery storage systems. Slowing down the growth of storage and renewables could potentially promote fossil fuels again, reversing the energy transition.
The competition between gas power plants and battery storage systems for network connections is intensifying. The outcome will significantly impact Germany's energy transition. As battery storage systems gain prominence, the role of gas power plants in the energy mix may decrease, raising questions about their economic viability and the need for policy updates to reflect the evolving energy landscape.
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