SUBSCRIBE
PROFILE

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:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

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.

  • Popular on energynews.pro
Nuvve invests $10mn in three energy storage projects in Denmark
Nordex signs 42 MW contract with SSE for two wind farms in Spain
Mizuho Lease launches acquisition of Japan Infrastructure Fund to strengthen solar assets
Flamanville EPR reaches 80% output as EDF stays on schedule
DenkerWulf commissions Nordex to install 25 wind turbines for 123 MW in Germany
Massive outage in the Dominican Republic: 85% of the grid still down
A major blackout has disrupted electricity supply across the Dominican Republic, impacting transport, tourism and infrastructure nationwide. Authorities state that recovery is underway despite the widespread impact.
Vietnam strengthens its energy policy to accelerate low-carbon transition
Vietnam is consolidating its regulatory and financial framework to decarbonise its economy, structure a national carbon market, and attract foreign investment in its long-term energy strategy.
EBRD injects $40mn into Infinity Power to accelerate African expansion
The European Bank for Reconstruction and Development strengthens its commitment to renewables in Africa by supporting Infinity Power’s solar and wind expansion beyond Egypt.
Gavin Newsom seeks to reposition California as an autonomous player amid US withdrawal
Governor Gavin Newsom attended the COP30 summit in Belém to present California as a strategic partner, distancing himself from federal policy and leveraging the state's economic weight.
Beijing opens major energy projects to private capital to revive investment
Chinese authorities authorise increased private sector participation in strategic energy projects, including nuclear, hydropower and transmission networks, in an effort to revitalise slowing domestic investment.
South Africa reforms its rules to accelerate electricity transmission projects
A new regulatory framework comes into effect to structure the planning, procurement and management of electricity transmission infrastructure, aiming to increase grid reliability and attract private investment.
L’Union africaine réclame une réforme des règles de financement climatique avant la COP30
À l’approche de la COP30, l’Union africaine demande une refonte des mécanismes de financement climatique pour garantir des ressources stables et équitables en faveur de l’adaptation des pays les plus vulnérables.
Global energy efficiency slows to 1.8% in 2025, far from COP28 target
Global energy efficiency progress remains below the commitments made in Dubai, hindered by industrial demand and public policies that lag behind technological innovation.
Global renewable capacity to reach 793 GW in 2025 despite limited political ambitions
Global solar and wind additions will hit a new record in 2025, but the lack of ambitious national targets creates uncertainty around achieving a tripling by 2030.
South Korea under industrial pressure over emissions targets deemed unrealistic
South Korean refiners warn of excessive emissions targets as government considers cuts of up to 60% from 2018 levels.
Lula defends funding energy transition through oil revenues
Ahead of COP30 in Belém, Brazilian President Luiz Inacio Lula da Silva adopts a controversial stance by proposing to finance the energy transition with proceeds from offshore oil exploration near the Amazon.
China could reach its CO2 emissions peak around 2028, experts say
An international group of researchers now forecasts a Chinese emissions peak by 2028, despite recent signs of decline, increasing uncertainty over the country’s energy transition pace.
Electricity price surge in Syria deepens social and economic crisis
The end of subsidies and a dramatic rise in electricity prices in Syria are worsening poverty and fuelling public discontent, as the country begins reconstruction after more than a decade of war.
Global warming heads toward 2.5°C despite commitments
Current emission trajectories put the planet on course for a 2.3°C to 2.5°C rise, according to the latest UN calculations, just days before the COP30 in Belem.
Australia to Offer Three Hours of Free Electricity Per Day Starting in 2026
The Australian government plans to introduce a free solar electricity offer in several regions starting in July 2026, to optimize the management of the electricity grid during peak production periods.
India reforms renewable energy market to ensure integration and reliability
India is implementing new reforms to effectively integrate renewable energy into the national grid, with a focus on storage projects and improved contracting.
China shifts to ‘High-quality’ renewable growth with new pricing mechanism following 264 GW boom in H1 2025
China added a record 264 GW of wind and solar capacity in the first half of 2025, but the introduction of a new competitive pricing mechanism for future projects may put pressure on prices and affect developer profitability.
The French State activates the IEF control on Exaion’s sale to American Mara
The government confirmed that the majority sale of Exaion by EDF to Mara will be subject to the foreign investment control procedure, with a response expected by the end of December.
Brazil Reduces Emissions by 16.7% in 2024 Ahead of COP30
A week before COP30, Brazil announces an unprecedented drop in greenhouse gas emissions, driven mainly by reduced deforestation, with uneven sectorial dynamics, amid controversial offshore oil exploration.
Angola connects 20,000 households to electricity as part of Catabola project
The Catabola electrification project, delivered by Mitrelli, marks the first connection to the national grid for several communities in Bié Province.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.