Urgent Need for New Hydrogen-Ready Gas Power Plants Amid Coal Phase-Out
Tue 25th Feb, 2025
The Federal Association of Energy and Water Management (BDEW) has highlighted the pressing need for clarity from the future federal government regarding the construction of new hydrogen-capable gas power plants. During a recent infrastructure development conference in Cottbus, BDEW's managing director emphasized that immediate action is crucial to meet the demands of the coal phase-out in the Lausitz region. The association has called for the establishment of a clear bidding framework for these new gas power plants, which are essential as the country moves away from coal dependency. The energy sector is currently in a state of uncertainty as plans for the funding of these gas power plants remain unresolved. Previous initiatives led by the former economic minister were halted due to the collapse of the previous coalition government, leaving a gap in the strategic planning necessary for a smooth transition. Gas power plants are envisioned to serve as backup energy sources when renewable sources such as solar and wind are insufficient. The timeline for phasing out coal and transitioning to alternative energy sources heavily relies on the establishment of these gas facilities. The future role of these plants includes a shift towards utilizing environmentally friendly hydrogen fuel. The BDEW has pointed out that energy companies are keen to invest in this economically viable alternative, but they require a solid investment framework to proceed. The construction of new gas power facilities is a lengthy process, estimated to take around six years from planning to completion. As such, there is a critical need for expedited decisions to facilitate this transition. According to Germany's coal phase-out legislation, coal-fired power generation in the Lausitz region must cease by 2038 at the latest. In a move to accelerate the transition, the energy company Leag has initiated significant restructuring efforts to pivot towards renewable energy sources in the region. Additionally, in the Rhineland region, the coal phase-out has been moved forward by eight years to 2030. The BDEW's appeals underscore the urgent need for decisive action to ensure that the energy transition remains on track, as delays could hinder the overall progress towards a sustainable energy future.
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