“We want to ensure that Germany’s electricity needs are met even when wind and sun are not available,” says Chancellor Friedrich Merz.
The German government intends that its plans for dispatchable capacity will provide sufficient reserve to overcome Dunkelflaute, aka dark doldrums – extended periods with little wind or sunshine.
Germany has worked on plans for state support for new gas power plants for years but negotiations with the European Commission, which needs to approve any state aid scheme, and the collapse of the former government have delayed the process. As Germany phases out coal power plants and increases the share of weather-dependent wind and solar energy, it needs additional capacity that can be switched on and off when needed. This includes gas power plants, but also other options such as batteries. The government also plans to make better use of flexibilities in the system, for example by introducing incentives to move demand to periods of high renewables feed-in.
The current coalition initially agreed to build up to 20 GW of new gas power plants by 2030, but it has looked increasingly unlikely that the European Commission would allow this. The EU has strict conditions for member states aiming to provide state support to industry. The European Commission had already given its approval for the previous government’s plans for 12.5 GW of dispatchable power, but the coalition collapsed before the auctions were able to start and the new scheme required fresh negotiations.
Chancellor Merz said that the Commission had signalled it would give a green light for the plans soon.
The plans include auctions in 2026 for a total of 10 GW of dispatchable capacity to secure electricity supply, built in regions where it is most needed. 8 GW of tenders would be for gas-fired power plants, the remaining 2 GW would be open to other technologies, including battery storage.
Until now, it had remained unclear whether the government would mandate that new gas power plants have to be ready to run on hydrogen, but the new agreement brings clarity. The gas power plants must be “hydrogen ready.” Chancellor Merz confirmed that they “will be put out to tender in such a way that they are technically capable of using hydrogen and can be decarbonised in line with climate targets by 2045 at the latest, using any technology.” That means they could in theory be fitted with carbon capture technology as well. However, it remains to be seen whether it makes economic sense to equip a plant with both technologies.
In addition to the first ten gigawatts of electricity capacity, the coalition agreed to:
- Hold auctions for at least 2 GW of additional hydrogen-ready gas power plants in 2026 or 2027, which would be in operation by 2032 and would be required to switch to run on hydrogen “early”. These are meant to advance the phase-out of fossil fuels, and would receive temporary state support to cover operating costs arising from the switch to hydrogen.
- Set up auctions at short notice in 2029 for an unspecified capacity volume if needed to secure electricity supply. These would be open to all technologies, and would include existing capacity, and extend to power plants in neighbouring countries.
- Go through with plans to set up a capacity market by 2027 to ensure supply security from 2032, beyond the earlier auctions.
Economy minister Katherina Reiche said the auctions will form the basis for a secure electricity supply and competitive German industry. “This is an important first step towards the introduction of a comprehensive, technology-neutral capacity market, which will encourage the construction of additional power plants and other flexible capacity,” she added.
Energy sector legal experts have said that due to the lengthy process, first auctions are unlikely to start before late 2026.
Energy industry association BDEW said the coalition agreement is “a positive sign of greater security of supply.” The group welcomed the decision to provide state support for the operating costs of the switch to hydrogen for some of the plants. “Especially in the early stages of hydrogen ramp-up, instruments such as CfDs [contracts for difference] are needed to close the existing gap between production costs and willingness to pay and to actually trigger investments,” said BDEW head Kerstin Andreae.
NGO Environmental Action Germany (DUH) criticised the focus on gas-fired power plants, which means that “battery storage has no chance.”
RWE has declared itself ready to build new hydrogen-compatible gas-fired power stations. “We have already made significant progress with the planning approval process at several power station sites and have reserved capacity for key components with suppliers,” said Michael Müller, RWE CFO, presenting interim results for the first nine months of 2025. “Weisweiler, Voerde and Werne are examples of sites where we could quickly start construction. We envisage a total of 3 GW of new flexible [RWE] power plant capacity in Germany – provided that the economic criteria allow it. We are in the starting blocks.”
*Creative Commons Attribution 4.0 International Licence (CC BY 4.0). Edited version of an article first published by Clean Energy Wire, 14 Nov 2025, cleanenergywire.org
