Federal Power Plant Strategy: Technology-Neutral Expansion to Secure Electricity Supply

The federal government has reached a principle agreement with European authorities on key elements of a technology-neutral power plant strategy. The strategy provides a framework for ensuring a stable electricity supply in line with renewable energy targets.

Short-Term Auctions for Flexible Capacity

The first step involves auctions for 12 gigawatts of new dispatchable capacity within the current year. Ten gigawatts of this will meet long-term criteria, ensuring continuous operation to support supply security. The long-term capacities include modern, highly efficient gas turbines and other flexible technologies, all required to start operations by 2031.

All new plants must be hydrogen-ready and fully decarbonize by 2045. Additional measures aim to incentivize early conversion to hydrogen, targeting 2 gigawatts by 2040 and a further 2 gigawatts by 2043. Legal frameworks are being established to allow auctions for early decarbonization, including contracts covering additional fuel costs.

Ensuring Supply Security and Climate Goals

The strategy supports both the security of electricity supply and national climate neutrality targets, while also guaranteeing the legally mandated coal phase-out by 2038. Approval under EU state aid regulations is still pending, but the strategy sets the stage for a robust, technology-neutral market that encourages new capacity investment, including renewable energy integration, storage, and other flexible power sources.