Boxberg Is Set to Become the Site of a Gas-Fired Power Plant

Boxberg, a historic power plant site in Lusatia, is set to embark on a new future with the construction of a gas-fired power plant. This is the result of the first round of bidding by the Federal Network Agency. Saxony’s political leaders have reacted positively to the decision.

The award is a major success and an important signal for Saxony and Lusatia, explained Minister President Michael Kretschmer (CDU). “The Free State has worked hard to ensure that the existing energy infrastructure continues to be used and that employees have a future even after lignite-fired power generation comes to an end.”

The end of lignite does not mean the end of power plant operations, said Minister of Economic Affairs Dirk Panter (SPD). “By continuing to use the existing infrastructure at the Boxberg power plant site in Saxony, we avoid the costs of building a completely new power plant. This makes economic sense and ultimately benefits electricity customers.”

Eleven new plants planned nationwide

The new gas-fired power plants are intended to ensure electricity generation during periods of low sunlight and low wind. Eleven plants will be built by 2031 in Brandenburg, North Rhine-Westphalia, Bavaria, and Baden-Württemberg, in addition to Saxony. Two additional calls for bids are planned.

The costs for the gas-fired power plants are to be covered by a new surcharge on all electricity consumers. It remains to be seen by how much electricity prices will rise as a result. The plants are initially intended to burn natural gas. By 2045 at the latest, however, the gas-fired power plants are expected to operate “climate-neutrally” using hydrogen.