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New gas-fired power plants are expected to step in during periods of low sunlight and low wind

New gas-fired power plants are expected to step in during periods of low sunlight and low wind
The energy company Leag had also participated in the bidding process with its Jänschwalde facility in Brandenburg. (File photo) / Photo: Frank Hammerschmidt/dpa
From: Sachsen News
Eleven power plant projects are receiving funding to ensure a supply of electricity during periods of low wind and low sunlight. The costs are to be passed on to all electricity consumers—it remains to be seen how much this will ultimately cost.

New gas-fired power plants to generate electricity during periods of low wind and solar output will be built by 2031 in Brandenburg, North Rhine-Westphalia, Saxony, Bavaria, and Baden-Württemberg. This is the result of the first round of tenders issued by the Federal Network Agency.

Starting in 2031, gas-fired power plants will primarily ensure that there is still enough electricity available when wind and solar power are insufficient: The Federal Network Agency has now named the first power plant projects that are set to receive funding for 15 years to maintain so-called generation capacity. They were selected through a bidding process in which 41 bids were submitted. Two additional rounds of bidding are planned.

Eleven bids were awarded contracts. The gas-fired power plants are located in Brandenburg (4 awarded contracts), North Rhine-Westphalia (3), Saxony (2), Bavaria (1), and Baden-Württemberg (1). The bidders for these projects were the companies RWE, Leag, Gaskraftwerk Leipheim, and Stadtwerke Karlsruhe.

A total of 5,160 megawatts of capacity was awarded. According to the information provided, the average award price was 155,296 euros per megawatt-hour. This results in annual costs of just over 800 million euros for these eleven power plant projects. The costs are to be covered by a new surcharge imposed on all electricity consumers. It remains to be seen by how much electricity prices will rise as a result.

The new plants are initially intended to burn natural gas. By 2045 at the latest, however, the gas-fired power plants are to operate “climate-neutrally” using hydrogen.

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