Southern Germany to receive two thirds of new gas power plant capacity, economy minister says

Amid the phase-out of coal power, Germany plans to install new gas-fired power plants as a backup for renewable energy sources. Economy minister Katherina Reiche announced at a party convention of the Christian Social Union (CSU) in Bavaria that these plants will primarily be constructed in the south of the country.

In forthcoming auctions for the plants, which are intended to fill electricity production gaps during periods of low renewable energy output, the government will offer a 'south bonus' to encourage the construction of two thirds of the planned 20 gigawatts (GW) of new capacity in southern states, Reiche said according to news website Zeit Online. These states have a considerably lower average share of renewable power production throughout the year than their northern counterparts. Reiche also said that Germany is currently negotiating the auctions’ design with the European Commission to ensure compliance with EU state aid rules.

The previous government had planned to construct new gas-fired power plants, albeit with only half the capacity, also predominantly in Germany’s south. While they had envisioned that the new plants could later be converted to run on hydrogen, the new government under chancellor Friedrich Merz has dropped this requirement, instead hoping to ensure emission reduction through carbon capture (CCU/CCS).