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Germany's Energy Transition Urgency: New Gas Plants Needed by 2035

Germany's energy transition needs a boost. New gas plants are crucial, but flexibility and storage also play a key role.

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Germany's Energy Transition Urgency: New Gas Plants Needed by 2035

Federal Minister of Economics Katherina Reiche (CDU) has emphasized the urgency for action in Germany's energy transition. She advocates for the swift construction of controllable power plants, with an emphasis on new gas power plants. The Federal Network Agency's recent supply security report, adopted by the cabinet, underscores this need.

The report projects a significant requirement for additional controllable capacities by 2035, particularly new gas power plants. In a delayed energy transition scenario, up to 36 gigawatts of gas power plants may be needed. Even in the best-case scenario, up to 22 gigawatts could be required.

The Federal Network Agency highlights the growing role of storage systems in securing the electricity supply. It also emphasizes the importance of electricity consumers reacting more flexibly to price changes. Klaus Müller, President of the Federal Network Agency, promotes a capacity mechanism to ensure the refinancing of gas power plants.

The Bundesnetzagentur (BNE) questions the capacity market mechanism due to potential high costs. However, it acknowledges the need for additional secured power capacity, especially new gas power plants, to ensure grid stability during periods without sun or wind. The Bundesverband der Energie- und Wasserwirtschaft (BDEW) confirms the urgent need to expand gas power plants and additionally recommends other controllable power options like combined heat and power (CHP) plants, pumped storage plants, and battery storage to provide the necessary flexible capacities by 2035.

The Federal Government, led by Minister Reiche, is committed to addressing the urgent need for additional controllable power capacities, particularly new gas power plants, to secure Germany's energy supply by 2035. The Federal Network Agency's report and the recommendations of industry bodies will guide these efforts.

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