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Germany Opens Second Auction for Gas Backup Plants as Rules Are Tightened

The Economy Ministry tightened eligibility to stop converted coal plants from remaining in the grid past 2030.

Overview

  • The Bundesnetzagentur launched the second auction on Wednesday to procure 3,840 megawatts of gas-fired backup capacity for use in low-renewable periods.
  • The Economy Ministry published a 'Konkretisierung' on Tuesday that bars bids for coal-to-gas conversions that could remain in the system after January 1, 2030, to ensure new capacity is actually added.
  • Eleven projects won awards in the first round, including several LEAG fuel-switch conversions in Brandenburg and Saxony, and those results drew sharp criticism from groups such as BUND for favoring older, less efficient units.
  • The plants are intended as limited-use backups to cover so-called Dunkelflauten from the end of 2031 and will receive fixed state payments for 15 years to make them financially viable.
  • A planned Südbonus is meant to steer locations toward the netztechnischer Süden but regional tensions persist because Nordrhein-Westfalen is classed as south and hosts many coal sites; the auction accepts bids until December 29 and observers will watch how the new rules affect coal retirements and emissions.