Germany Launches Tender for Hydrogen-Ready Gas Power Plants
Key Ideas
  • Germany initiates tender for 12.5 GW of gas power plants capable of switching to hydrogen by late 2024, aiming to accelerate the transition to low carbon generation.
  • The scheme includes tenders for new hydrogen-ready gas power plants, retrofitting old plants for hydrogen use, long-term storage, and fully hydrogen-powered plants.
  • Investment and operating costs for hydrogen conversion will be subsidized for 800 full-load hours per year, with a deadline of eight years for the first-phase-constructed plants to switch to green or blue hydrogen.
  • Utility companies like RWE, EnBW, and Uniper express readiness to participate in the scheme, emphasizing the need for clear auction design details and preparation time.
Germany has announced plans to launch the first tender for the construction and modernization of 12.5 GW of gas power plants capable of switching to hydrogen by the end of 2024 or early next year. This initiative comes in response to industry pressure and aims to complement wind and solar energy, expediting the shift towards low carbon generation as Germany transitions to renewables post its nuclear power phase-out. The tender comprises two rounds for building new hydrogen-ready gas power plants, retrofitting old plants for hydrogen use, long-term storage, and fully hydrogen-powered plants. The German economy ministry specified that costs for hydrogen conversion will be subsidized for 800 full-load hours annually. Utility giants RWE, EnBW, and Uniper have welcomed the tender but stress the importance of receiving detailed auction design information promptly for adequate preparation. The tender will have two phases, with an eight-year deadline for the first-phase-constructed plants to transition to green or blue hydrogen. The majority of the plants are planned for southern Germany to improve grid stability and reduce costs. Germany recently secured EU approval to provide subsidies for these power plants, marking a significant step in its energy transition efforts.
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