Germany will use auctions to ensure the construction of new gas power plants, which the government sees as necessary to secure supply when renewable energy is insufficient, according to Economy Minister Robert Habeck. “We will build the power plants we need for times when wind and sun do not provide enough electricity,” the minister said at the presentation of a report on the country’s progress toward climate neutrality. Germany has used auctions in recent years to incentivize and control the expansion of wind and solar energy. Companies compete in these tenders for financial assistance for renewable energy. There are now tools at our disposal, and we’ll develop more so that, by 2030, we’ll have added around 25 gigawatts of capacity for alternative energy sources to coal-fired power plants. He stated that these will initially be fueled by natural gas and then “as quickly as practicable” by hydrogen. By the summer, his administration would publish a “power plant strategy”.
Several new gas power units are required to supplement renewable electricity production, according to the ruling parties’ coalition agreement, but Germany’s energy sector has long cautioned that there are little incentives for businesses to build them. The utilization of the plants would only occur during times of peak demand or when wind and solar power are insufficient, and not otherwise. According to the industry, maintenance costs for gas plants would need to be covered in addition to the kilowatt hours they produce.
Overall, according to Habeck, the situation for Germany’s transition to a climate-neutral energy system by 2045 is improving since the nation has “gone through the valley” in terms of the growth of wind and solar energy. He continued, “Solar energy is certainly increasing, and I am confident that we can accomplish the objectives we have set for ourselves. We can clearly identify a tendency with onshore wind that it isn’t yet at an acceptable level. The government was able to respond quickly to the energy crisis brought on by Russia’s war against Ukraine, according to the ministry’s report, which is titled “Renewing prosperity in a climate-neutral way,” and it was successful in securing supply, stabilizing the economy, and relieving the population. The discussion of methods to revive Germany’s economic growth and safeguard the environment simultaneously is the next stage. In addition to developing grid infrastructure, accelerating the hydrogen economy, and changing heating systems, the government is putting a strong emphasis on decarbonizing industries. It plans to implement “climate contract” subsidies as part of a future industrial strategy to assist businesses in switching to less climate-damaging manufacturing methods and to improve industry’s direct access to affordable renewable electricity.