The German Government has unveiled an ambitious plan to drive the transition towards renewable energy by announcing tenders for 5GW of hydrogen-ready gas power plants and 2GW for hydrogen-ready modernisations by the beginning of 2025. These power plants, mandated under the Power Plant Safety Act and aligned with the National Hydrogen Strategy, are set to switch to green or blue hydrogen operation by their eighth year of operation. The move to 100% hydrogen operation is expected to take place between 2035 and 2040, with subsidies allocated to cover the investment costs of transitioning from gas. Additionally, the plan includes 5GW of tenders for new gas-fired power plants to ensure security of supply, especially during periods of low demand, and to establish a technology-neutral capacity mechanism set to be operational from 2028. The capacity mechanism aims to create a market where companies are paid to keep backup plants on standby, enhancing grid resilience during peak demand periods. The subsidies for this program, originally set at €16bn, have been adjusted to account for 7.5GW of hydrogen-ready gas-fired power plants and will be financed from Germany's Climate Transformation Fund. Deputy Chancellor Robert Habeck emphasized that this strategy will increase the share of renewables in the electricity mix and provide additional security for times when renewable generation is limited. Germany's commitment to hydrogen-ready infrastructure marks a significant step towards achieving its renewable energy goals and ensuring a sustainable energy future.