Energy entrepreneur Reiche is dedicated to establishing fresh gas-fueled power plants in the southern region of Germany.
Germany to Build 20 GW of New Gas Power Plants, Focus on Southern Region
Germany is planning to build up to 20 GW of new gas-fired power plants, with the first government tenders expected in the first half of 2026. This initiative aims to enhance energy security and provide backup capacity as the country phases out coal and nuclear power.
The focus on new gas power plants in southern Germany, often referred to as a "southern bonus," will see two-thirds of the total capacity awarded built in the region. This decision was announced by Federal Minister of Economics Katarina Reiche, who emphasized the need for quick implementation of new gas power plants in Germany.
One example of a planned location for these new power plants is the München Nord power station in Bavaria, which is transitioning from coal to gas. The coal unit is set to retire in July 2024, with gas operation expected to start around the 2024/25 heating season. However, specific sites for new gas plants beyond conversions like this one have not been detailed in current data.
Energy Minister Thekla Walker (Greens) has called for the tender of modern hydrogen-capable power plants in Baden-Württemberg. She emphasized the importance of these reserve power plants being H2-ready and converted to hydrogen as soon as possible.
The capacity associated with these new projects will be substantial, up to 20 GW in total by 2030, reflecting a significant expansion of gas-fired power in Germany’s energy mix.
The shift to gas power is part of Germany’s strategy to ensure grid stability and energy security amid renewable expansion. While LNG imports and gas infrastructure are expanding to support this, challenges remain, such as fluctuating demand and regulatory hurdles. The availability of gas plants as flexible backup supports price stability in wholesale electricity markets but can also contribute to price volatility in gas markets depending on global LNG supply and demand dynamics.
Battery storage projects, such as EnBW's 400 MW/800 MWh battery storage system proposed at a former nuclear plant site, are being developed alongside gas plants to further support grid flexibility and help manage variable renewable generation.
In addition, the federal cabinet will decide on the first relief measures before the summer break, including the reduction of electricity tax, relief from network charges, and the gas storage surcharge. The new federal government aims to reduce high electricity prices for companies to make them competitive.
However, Energy Minister Thekla Walker (Greens) has expressed concerns about relying on gas longer than necessary, citing uncalculated cost risks. She also stressed that if the federal government were to switch back to old technology instead, it would undermine the emerging hydrogen economy.
Southern Germany needs not only new networks but also sufficient buffer capacities, according to Energy Minister Thekla Walker (Greens). She also called for a "balanced triangle" of ensuring supply security, protecting the climate, and affordability to come together again.
The federal government is currently in intensive talks with the EU Commission regarding the tender for the first 20 gigawatts of new gas power plants in Germany. Bavaria is expected to benefit from the power plant strategy as well as from the tender for the first 20 gigawatts of new gas power plants in Germany.
The Agency for Industry and Energy is collaborating with Thekla Walker, the Energy Minister, to ensure the quick implementation of modern hydrogen-capable power plants in Baden-Württemberg, as part of Germany's strategy to expand gas-fired power and support grid flexibility.
In the tech-driven future, these energy projects, including gas power plants and battery storage systems, are expected to adapt and integrate with advancements in technology, such as hydrogen capabilities, to minimize reliance on traditional finance-heavy fossil fuels.
