The construction of new power plants to secure the electricity supply could cost consumers up to three billion euros annually starting in 2031. This is according to the draft legislation for the power plant strategy approved by the federal government on Wednesday. For 2031, the government anticipates subsidy costs of between one and three billion euros, followed by 0.9 to 2.3 billion euros annually from 2032 to 2045. This is to be financed via a levy, which is to be established by a separate law in 2027 and borne by electricity consumers from 2031 onwards.

The draft also sets the maximum bid value for energy suppliers participating in tenders for the construction of new power plant capacity. For new long-term and generation capacities, this amount is set at 173,000 euros per megawatt of reduced output per year. The ceiling is intended to prevent over-subsidization that could arise from strategic behavior or insufficient competition.

(Report by Holger Hansen, edited by Christian Rüttger. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)