Leag warns of disadvantages for planned eastern power plants

The energy company Leag sees planned new gas-fired power plants in eastern Germany at a disadvantage due to the federal government's power plant strategy. If the so-called southern bonus is enshrined in the future Power Plant Security Act, projects in the grid-connected north would have little chance in competition, Leag CEO Adi Roesch told the German Press Agency.

"If the southern bonus is enshrined in the future Power Plant Security Act, projects for H2-ready gas-fired power plants in the grid-connected north will have virtually no chance in competition," said Roesch. Power plants in the south could also benefit from remuneration for grid stabilization measures. This would result in a "massive distortion of competition for energy locations in the east".

Power plants for dark doldrums

The German government is planning new controllable power plants, especially hydrogen-capable gas-fired power plants. They are intended to step in when renewable energies do not supply enough electricity - for example during so-called dark doldrums without wind and sun. Up to 25 gigawatts are to be built by 2030, with 12 gigawatts to be put out to tender in 2026.

The governments of Saxony and Brandenburg are also calling for greater consideration to be given to eastern German locations.

Projects in the east

Leag is planning a new gas-fired power plant at the Lippendorf site south of Leipzig, among other things. According to the company, the first partial approval for the plant with up to 870 megawatts was granted in 2024. The company is also preparing a similar project at the Schwarze Pumpe power plant site in Lusatia. According to Leag's plans, Lippendorf could be connected to the grid around 2031.

Roesch warned: "We expect that security of supply and industrial development will not be lost sight of politically when designing the Power Plant Safety Act."