Germany prepares to tender support for hydrogen-ready power plants

Germany’s federal government on Friday announced an agreement on the power plant strategy and plans to tender 12.5 GW of power plant capacity plus 500 MW of long-term storage.

The tenders will be conducted within the framework of the Power Plant Safety Act along two pillars. Under the first, subsidies will be awarded to 5 GW of new hydrogen-ready gas-fired power plants and 2 GW of hydrogen-ready modernisations. These projects must switch to green or blue hydrogen from the eighth year of their commissioning or modernisation. In addition, 500 MW of pure hydrogen power plants and 500 MW of long-term storage are envisaged.

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Under the second pillar, 5 GW of new gas-fired power plants will be auctioned, which will support the system mainly during periods of low generation.

There will now be six-week consultations on the two pillars, with the first tender planned for the end of 2024 or the beginning of 2025.

These tenders come ahead of a comprehensive capacity mechanism that should be operational from 2028.

Economy minister Robert Habeck said the efforts are aimed at making the electricity system fit for a high proportion of renewable energies and providing security for times of little wind and sun.