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EU Approves 12 GW of Gas Reserve Plants for Germany

Auctions next spring will allocate projects under a 29 GW capacity scheme requiring hydrogen‑ready plants to be climate‑neutral by 2045.

Overview

  • Brussels cleared up to 12 gigawatts of state‑supported, flexible gas capacity as reserve power to backstop Dunkelflauten and the coal phase‑out.
  • The authorization caps Berlin’s earlier 20 GW request and sits alongside a 29 GW capacity mechanism that pays for available reserves, including batteries, biogas and demand response.
  • The German government plans competitive tenders in spring 2026, with the new units slated to be in service by 2031.
  • All new stations must be built hydrogen‑ready and may run on gas until supplies of clean hydrogen scale, with full climate‑neutral operation required by 2045 and staged conversion commitments of 2 GW by 2040 and another 2 GW by 2043.
  • Funding for the capacity payments remains undecided, with options ranging from the federal budget to a new consumer levy, as political and public debate questions costs, adequacy and fuel availability.