Overview
- Brussels and Berlin agreed on the framework for Germany’s Kraftwerksstrategie, with the European Commission saying it intends to grant state‑aid approval once draft laws are submitted.
- Auctions are planned in 2026 for 12 GW, including 10 GW with long-duration output likely suited to gas plants and 2 GW technology‑neutral, with targeted operation by 2031 and a capacity market envisaged from 2032.
- All new units must be hydrogen‑ready and fully decarbonize by 2045, with staged incentives reported for earlier conversion of 2 GW by 2040 and a further 2 GW by 2043.
- Funding details remain open, with multi‑billion‑euro support expected to come either from the federal budget, a new levy on power bills, or a mix of both.
- Industry groups back the plan as essential for supply security and prices, while environmental NGOs criticize the gas focus and the long‑duration criterion that limits battery participation; a public discrepancy also surfaced between Chancellor Merz and the economy ministry over hydrogen‑readiness messaging.