Energy company Leag is seeking new opportunities for each of its locations

The energy company Leag aims to find a sustainable solution for each lignite site in the bidding process for new power plants. Leag CEO Adi Roesch stated that the construction of new power plants is the necessary technological backup to intelligently complement a combination of renewable energies with battery storage. “That is why we have submitted bids for several projects and sites in Lusatia, central, and southern Germany.”

Leag plans to build new gas-fired power plants that can later be converted to hydrogen-fired power plants to provide a long-term outlook following the coal phase-out. It operates four lignite-fired power plants in Brandenburg and Saxony, as well as other sites, including the Leipheim gas-fired power plant near Ulm in Baden-Württemberg. 

Leag CEO: Seeking a Solution for Every Power Plant Site

CEO Roesch said the plans would fully leverage the opportunities offered by the so-called Power Plant Act to seek follow-up solutions for every power plant site. This involves Jänschwalde and Schwarze Pumpe in Brandenburg, as well as Boxberg and Lippendorf in Saxony.

The Electricity Supply Security Act is intended to facilitate the construction of new power plants. Two tenders are planned for this year. The first bidding round of the tender has just been completed, and the Federal Network Agency is now evaluating the projects. According to the Network Agency, the plants are intended to provide a secure supply of electricity over an extended period to cover longer phases without renewable energy generation or electricity imports. 

“Southern Bonus” Met with Criticism

The draft bill drew criticism because two-thirds of the new gas-fired power plant capacity was to be built in the south—for which there was to be a “southern bonus.” Providers such as Leag, as well as politicians, called for changes. Federal Minister of Economics Katherina Reiche (CDU) reached out to the north and east, and the “Southern Bonus” will not take effect immediately.

The coal phase-out plan specifies when the power plants will be shut down. The Jänschwalde power plant will be completely shut down by the end of 2028. According to Leag, the two 500-megawatt units in Boxberg will follow by the end of 2029. The Lippendorf power plant is scheduled for decommissioning in 2035, while Schwarze Pumpe and the remaining Boxberg units are scheduled for decommissioning at the end of 2038.