Germany and the European Commission have agreed in principle to allow state support for new gas-fired power plants that can later be converted to run on hydrogen, with the first units due to be operational by 2031, reports Clean Energy Wire. The plan aims to ensure electricity supply security as Germany exits coal combustion and expands renewables.
The preliminary deal would allow the country to incentivise the construction of new backup gas-fired power plants with federal funds, said country’s economy and energy ministry. “With the short-term tenders for twelve GW of new, additional controllable capacity, we are laying the foundation for a secure electricity supply in Germany in the future and thus for the competitiveness of our industry,” said economy minister Katherina Reiche.
Under the agreement Germany will hold state support tenders for 12 GW of “controllable capacity” in 2026, such that ten GW of this volume, operational by 2031, that “must be able to generate electricity continuously over a longer period of time” [likely to be largely gas-fired power plants].
Further rounds of tenders will follow in 2027, and in 2029/2030 for “controllable capacity” that also must be available by 2031 (including existing power plants), and all newly built tendered gas-fired capacity must be hydrogen-ready, and decarbonise by 2045 at the latest. The phasing leaves open the option of carbon capture and storage.
Additional measures will incentivise the switch to hydrogen (2 GW by 2040, 2 GW by 2043) and tenders for support for the difference of the cost between hydrogen and fossil gas are to take place from 2027.
The deal includes small changes to an agreement presented by the coalition government in November 2025. The government must now prepare the actual legislative reform for the European Commission to give the final green light for the state aid scheme.
