Particle.news
Download on the App Store

Germany Approves €6.5 Billion Grid Subsidy as Coalition Scales Back Gas-Plant Plan

Relief slated for January 2026 still depends on EU state-aid clearance plus Bundesrat sign-off.

Overview

  • The Bundestag passed a one-year €6.5 billion subsidy to transmission system operators for 2026 to lower network charges, with a new rule requiring operators to publish tariffs with and without the subsidy, and the measure still needs Bundesrat approval.
  • The government also plans to abolish the gas storage levy on January 1, 2026 and extend a lower electricity tax, targeting roughly €10 billion in annual relief, though household savings are estimated at up to about €150 and could be smaller in practice.
  • Experts and consumer groups expect uneven pass-through to households due to regional factors and grid level, with industry set to benefit more; Verivox estimates roughly a 4% drop in household bills if suppliers pass on reductions.
  • The coalition’s capacity strategy foresees auctions in 2026 for 10 GW of dispatchable power, including 8 GW of hydrogen‑capable gas plants with a 10‑hour minimum run capability and 2 GW technology‑neutral, plus at least 2 GW more by 2027, yet EU approval and financing details remain unresolved.
  • A proposed 5 cents per kWh industrial electricity tariff for 2026–2028 requires EU clearance and coordination with existing compensation schemes, and industry groups warn that timing and investment certainty remain unclear.