S'abonner

Germany: New hydrogen and gas-fired power plants

Germany's Economics Minister announces progress in negotiations with the EU on aid for new hydrogen and gas-fired power plants, crucial to Germany's energy transition.

Share:

Germany’s Economy Minister hailed “significant progress” on Tuesday in talks with the European Commission on the state aid Berlin wants to devote to the construction of new hydrogen and gas-fired power plants, key elements in Germany’s energy transition. Germany wants to use these power plants to compensate for the intermittent supply of solar and wind energy.

Thorny discussions with Brussels on public financing of new power plants

Germany’s energy transition calls for the construction of new hydrogen and gas-fired power plants. These plants will be essential to ensure grid stability, given that nuclear power has been abandoned and coal is being phased out. However, there are challenges ahead in discussions with Brussels regarding public funding for these facilities. Their intermittent operation limits their profitability, which requires subsidies. The Minister for the Economy and Climate, Robert Habeck, described the negotiations as “intense”, although he was confident that agreement had been reached on the legal framework for the planned tenders for these power plants.

“We have made significant progress,” he said in a statement. The European Commission has not yet given the go-ahead for these subsidies, he added, but the discussions have made it possible to define “the safeguards (…) to comply with European legislation on state aid and energy”.

Agreement on tender for new hydrogen and gas power plants in Germany

According to the Green Minister, Germany is planning to invite tenders for 8.8 gigawatts (GW) of new hydrogen power plants. Up to 15 GW of additional capacity will initially run on natural gas before being connected to the hydrogen network by 2035. The Minister specified that the bidding process for 10 GW of these gas and hydrogen power plants will take place by 2026. The government will then evaluate the process before awarding the remaining 5 GW.

 

Conflict over subsidies: the decarbonization dilemma for Germany’s new gas and hydrogen power plants

Germany wants future power plants to fit in with EU decarbonization projects. This would guarantee rapid approval and a larger amount of aid, Spiegel magazine reported in July. The European Commission, however, sees a problem. Indeed, the construction of new power plants based on the combustion of natural gas does not really reflect a phasing-out of fossil fuels. As a result, only the climate-friendly hydrogen part could be subsidized. If this were the case, the amount of aid would be considerably reduced. Energy companies are emphasizing the urgent need for an agreement. Germany’s climate targets could be called into question if construction work on new power plants does not get underway quickly.

  • Populaires ​
Donald Trump significantly increases US tax credits for carbon capture
Czech Republic hit by massive power outage disrupting the economy
EDF postpones Calvados wind farm to 2027 due to faulty drilling tool
France anticipates significant slowdown in emission reductions starting in 2025
Gabon reactivates deep offshore blocks to stem oil decline
Trump law reshapes US energy markets according to Wood Mackenzie
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
The French Senate adopts the Gremillet bill for energy transition
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Latin America’s six largest economies accelerate transition to renewables
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
Canada funds 13 Indigenous energy projects with $40mn investment
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
Germany extends electricity price aid to 2,200 companies
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
U.S. Senate Approves Accelerated End to Renewable Energy Tax Credits
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Brazil: renewable energy curtailment to jump by 300% by 2035
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING