Reiche Wants to Expand Gas-Fired Power Plants Toward the North and East

Economics Minister Reiche has put forward new proposals to benefit the north and east of the country in the construction of new gas-fired power plants. (File photo) / Photo: Carsten Koall/dpa

Following protests by energy companies and federal states, the proposed legislation on the construction of new gas-fired power plants is to be amended—in favor of the northern and eastern states. A proposal to that effect has been put forward.

Federal Minister of Economic Affairs Katherina Reiche (CDU) intends to back down in the dispute over alleged discrimination against the north and east of the country regarding the construction of new gas-fired power plants. In the proposed legislation to secure the electricity supply, it appears that the so-called “southern bonus” for southern states will no longer apply in its current form. Improvements are planned to benefit Berlin, Brandenburg, Bremen, Hamburg, Mecklenburg-Western Pomerania, Lower Saxony, Saxony, Saxony-Anhalt, Schleswig-Holstein, and Thuringia. This is indicated by an amendment proposed by the CDU-SPD coalition, which has been made available to the German Press Agency. The “Märkische Allgemeine” previously reported on this.

“Southern Bonus” Will Not Take Effect Immediately

Until now, up to two-thirds of the power plant capacity put out to tender was to be allocated primarily to the “grid-related south.” This includes the federal states of Baden-Württemberg, Bavaria, Hesse, North Rhine-Westphalia, Rhineland-Palatinate, and Saarland. Under the new proposal, the “Southern Bonus” would not take effect until one-third of the awards have gone to the north and east.

The energy companies Leag in Brandenburg and Mibrag in Saxony and Saxony-Anhalt, along with the industrial union BCE, had called on the federal government to amend the draft bill. In June, the Bundesrat approved an amendment proposed by Saxony together with Brandenburg, Mecklenburg-Western Pomerania, and Saxony-Anhalt. New gas-fired power plants are intended to ensure the security of electricity supply as part of the phased phase-out of coal planned through 2038 and to serve as a kind of reserve in the future.

Reiche Wants to Expand Gas-Fired Power Plants Toward the North and East

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