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Legal Opinion and Cost Study Complicate Germany's 20 GW Gas-Plant Plan

Fresh scrutiny over legality, costs, feasibility pushes policymakers toward a mixed path.

Overview

  • A K&L Gates legal opinion for Deutsche Umwelthilfe argues broad subsidies for new gas plants fail EU state‑aid tests of necessity, proportionality and transparency.
  • Consultancy Roland Berger, in research for Enpal backed by 20 firms, estimates decentralized renewables and batteries could save €185–255 billion over 20 years and roughly €1,200 per household annually versus a gas‑led approach.
  • Analyses cited in the coverage say large batteries and cross‑border power flows depress peak prices and reduce profitable running hours for gas units, raising per‑kilowatt‑hour costs as fixed costs are spread over fewer sales.
  • Practical hurdles persist, including a global shortage of gas turbines highlighted by recent relocations for data centers and the current scarcity of green hydrogen needed for long‑term operation of hydrogen‑ready plants.
  • Minister Katherina Reiche maintains a target of at least 20 GW from 2027 and 80% renewables by 2030, yet signals a mixed build‑out as polling shows majority opposition to new fossil projects.