The German government has decided to reduce the volume of power plants to be offered in tenders, halving the target for gas-fired power projects from a previously announced target of 20 GW of capacity commissioned by 2030 to 8 GW expected by 2031; these 8 GW of gas-fired capacities will have to be "hydrogen-ready" or be outfitted with carbon capture (CCS), in order to be "decarbonised in line with climate targets by 2045 at the latest". Another 2 GW of power capacity from other technologies, including battery energy storage systems (BESS), will be offered through auctions in 2026 and 2027, for an expected commissioning by 2031.
Moreover, Germany may hold a short-term tender by 2029 to address possible additional needs, tendering 2 GW of hydrogen-ready gas-fired power plants in 2026-2027, for commissioning by 2032. An operating cost subsidy will be made available for a limited period, to cover the cost of switching to hydrogen.
The 20 GW target had initially been announced in April 2025.
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