Industry reaction: GW criticises delays in Germany’s power plant strategy

Following the German coalition committee’s latest decision to tender ten gigawatts of new dispatchable power capacity from 2026, the German Gas and Hydrogen Industry Association (GW) has welcomed the step as an “important start” — but warned that investors still face significant uncertainty due to unresolved details with the European Union.

According to the government’s plan, eight gigawatts of the new capacity will come from hydrogen-ready gas-fired power plants, while two gigawatts will be tendered on a technology-neutral basis. All new installations must be “H₂-ready” and achieve full decarbonisation by 2045.

In a statement published on Friday, GW CEO Dr. Timm Kehler said that the move “sets the course for the launch of urgently needed additional capacity” but criticised the lack of progress in EU negotiations: “Ten gigawatts is an important first step to ensure that electricity supply and industry remain stable in the future climate-neutral system. But investors and suppliers continue to grope in the dark because key details of the tenders are still missing,” Kehler said.

He added that the delays risk driving up system costs, which could ultimately require additional government support similar to the current temporary industrial electricity price mechanism.

The GW represents companies involved in gas, biogas and hydrogen production, transport, distribution and trade. Kehler noted that the industry is already preparing hydrogen core networks and storage infrastructure, and stands ready to build modern gas-fired plants that can later convert to hydrogen. However, he stressed that “clarity and reliable framework conditions” are urgently needed so projects can move forward without further delay.

The association urged both the federal government and the European Commission to finalise the outstanding legal and regulatory questions quickly, warning that “Germany cannot afford to lose more time on hydrogen.”

Source and Photo: GW