The German Federal Government has announced plans to tender 12.5 GW of gas-fired power plants that are capable of transitioning to hydrogen, as well as 500 MW of long-term storage, as part of the country's power plant strategy outlined in the economic growth package. The initiative will be rolled out in two phases. The first phase will include tenders for 5 GW of hydrogen-ready gas-fired plants, 2 GW for retrofitting old gas-fired power plants for hydrogen use, 500 MW of hydrogen-fired plants, and 500 MW of long-term storage. Subsidies will be provided to cover investment costs and the difference in operating costs between hydrogen and natural gas for 800 full-load hours per year. In the second phase, an additional 5 GW of hydrogen-ready gas-fired plants will be put up for tender. The projects are expected to be mainly developed in southern Germany and are targeted to transition to hydrogen within 8 years. Approval for the scheme was granted by the European Commission in June 2024. The tenders are set to commence by late 2024 or early 2025, aiming to drive the adoption of hydrogen technology in the energy sector, promote economic growth, and enhance sustainability.