The German government has announced the results of its first long-term capacity auction, awarding contracts for the construction of new power plants and the conversion of existing facilities to gas-fired generation (German government press release, 03/11/2026).
A total of 4,500 MW of reduced capacity (rMW) was initially put up for auction. The tender attracted 41 bids, representing a combined volume of approximately 11,958 rMW. The government ultimately selected 11 bids, amounting to around 5,160 rMW. According to the government, the awarded volume exceeded the initial auction target because the bid that pushed the total above the 4,500 rMW threshold was accepted in its entirety.
Under the scheme, gas-fired power plants will receive subsidies in exchange for making their capacity available when electricity generation from other sources, particularly solar and wind, is lower. The associated costs will be passed on to consumers through an additional levy. The average awarded price stood at EUR 155.3/MW, significantly below the maximum eligible price of EUR 244/MW, with payments spread over 15 years. The scheme is designed to encourage investment in new power generation capacity.
North Rhine-Westphalia received the largest share of awarded capacity, with three power plants totalling approximately 2,118 rMW. It was followed by Brandenburg (four power plants, approximately 1,819 rMW), Saxony (two power plants, approximately 910 rMW), Bavaria (one power plant, approximately 269 rMW) and Baden-Württemberg (one power plant, approximately 45 rMW).
LEAG, controlled by EPH, secured the largest share of the awarded capacity, with 3 rGW (total capacity of 3,680 MW) at the Jänschwalde (Brandenburg), Boxberg (Saxony) and Leipheim (Bavaria) sites, expected to be commissioned by the end of 2031 (LEAG press release, 03/11/2026). RWE, Germany's largest power producer, was allocated 2.12 GW for three hydrogen-ready gas-fired power plants in North Rhine-Westphalia: Voerde (730 MW), Weisweiler (700 rMW) and Werne (700 rMW) (RWE press release, 03/11/2026). Capacities are expressed in reduced megawatts (rMW).
The new gas-fired capacity, expected to become operational over the next decade, is intended to strengthen Germany's energy security as the country progressively phases out its coal-fired power plants.
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