BERLIN (dpa-AFX) - Federal Minister for Economic Affairs Katherina Reiche (CDU) is making headway on the planned construction of new power plants in Germany. The Ministry has initiated inter-departmental consultations for an "Electricity Security of Supply and Capacity Act." New "long-term capacities" are set to be put out to tender starting this summer, the Ministry announced upon inquiry. A draft bill obtained by the Deutsche Presse-Agentur refers to two bidding dates in September and December. Electricity consumers will face a new surcharge starting in 2031.

According to the Ministry, a long-term criterion is envisaged for approximately ten gigawatts of power plant capacity in the initial auction rounds - meaning they must be capable of providing electricity continuously over an extended period. The facilities must be available for security of supply for a fifteen-year period starting no later than 2031. Generation facilities such as power plants and electricity storage systems would be eligible to participate in the tenders.

Backups

New gas-fired power plants are intended to ensure security of supply as part of the planned phase-out of coal and will serve as backups in the future - during "dark doldrums" when solar and wind energy generation is low. By 2030, the share of renewable energies in electricity consumption is expected to rise to 80 percent. In the first quarter of 2026, this share stood at approximately 53 percent.

The draft bill states that an "addition of controllable capacity on a relevant scale" is necessary to guarantee security of supply. Consequently, the provision of capacity is to be remunerated through financial incentives. All power plants funded under the law must be climate-neutral after 2045 by transitioning to hydrogen.

Only a few days ago, the Finance Ministry expressed reservations regarding energy projects. Minister Lars Klingbeil (SPD) warned Reiche against slowing down the energy transition. Disputes could still arise during the departmental coordination process, as well as later in the parliamentary proceedings.

New Surcharge

Costs are to be financed through a new surcharge, according to the draft bill. It is scheduled for introduction in 2031. The costs to be financed by the surcharge include, among others, remuneration payments to successful bidders starting in 2031, the draft states.

Grid Package

Reiche is also planning a grid package. She aims to reduce costs in the energy transition and seeks to better align the expansion of wind and solar plants with the lagging grid expansion. Expensive curtailments caused by bottlenecks in the power grids are to be avoided.

In a draft bill dated April 17, the Ministry is sticking to controversial plans. Criticism is primarily directed at a planned "redispatch proviso": accordingly, areas where the curtailment of renewable energies exceeded three percent in the previous year could be designated as "capacity-limited" for up to ten years. Operators would only be allowed to build new wind turbines or solar plants in these areas if they waive compensation for curtailment for ten years.

Green Party energy politician Michael Kellner told the Deutsche Presse-Agentur: "Now it is up to the SPD. Katherina Reiche still wants to stall renewables with the redispatch proviso. This would destroy the bankability of new wind and solar projects."/hoe/DP/jha