Overview
- The first auction round will offer 12 GW of controllable capacity in 2026, with roughly 10 GW requiring long-duration operation that favors gas plants and 2 GW open to technologies such as storage.
- All awarded plants must be hydrogen-ready from day one and fully decarbonised by 2045, with staged incentives to convert 2 GW by 2040 and another 2 GW by 2043.
- Germany aims to have initial capacity online by 2031, run further auctions in 2027 and 2029/2030, and move to a technology-neutral capacity market from 2032 reported at about 29 GW.
- How to fund the scheme remains undecided, with options including federal budget support, a new surcharge on electricity bills, or a combination.
- Industry groups (BDI, BDEW) call the plan essential for security of supply, environmental NGOs (DUH, BUND) warn of fossil lock-in and higher costs, and an unverified DUH claim points to possible planning of up to 41 GW by 2030 as political messaging clashes over the hydrogen requirement.