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German Bundestag approves new law paving the way for 11 GW of backup capacity

The German Bundestag (lower house of the Parliament) has approved an amended version of the Electricity Supply Security and Capacity Act (StromVKG), whose draft was adopted by the government in May 2026, aiming to secure the security of electricity supply and to provide new capacities and to guarantee electricity supply when renewable power plants don't generate enough electricity (Bundestag, 09/07/2026).

The law paves the way for launching two tenders of 4.5 GW each - about 20 power plants - in September 2026 and December 2026; the projects must be kept operational for more than 15 years, must be hydrogen-ready, and must be climate-neutral from 2045. In addition, an auction for 2 GW of new generation capacity - to be kept available for 15 years - is planned for May 2027; battery storage operators will be allowed to participate in the tender and to offer shorter periods of uninterrupted storage capacity (an interruption of 3 hours is permitted in the amended act).

The amended act raises bid limits from EUR173,000/MW to EUR244,000/MW and introduces a regional distribution criterion, with 1/3 of the power plants to be built in northern Germany and 2/3 in the south.