According to a media report, the possible expansion of gas-fired power plants in Germany is in danger of failing due to EU competition regulations. As reported by Der Spiegel, Katherina Reiche’s (CDU) Federal Ministry of Energy is now only negotiating new capacities of 12 to 12.5 gigawatts in Brussels instead of the planned minimum of 20 gigawatts. Citing participants in a discussion between the ministry and energy companies, it was reported that Reiche’s negotiators are now assuming significantly lower new gas capacities.

The power plants are intended to supply electricity “when the wind is not blowing and the sun is not shining,” Der Spiegel quotes a statement made by the CDU politician this spring. Since they are only supposed to have limited operating times as backups, they need government subsidies to run economically. The federal government must obtain approval from the competition regulators in Brussels for state aid for the construction of new gas-fired power plants because they constitute an intervention in the European electricity market.

Critics accuse Reiche of focusing too heavily on natural gas. In addition to new power plants, large battery storage facilities, biomass and hydroelectric power plants also offer controllable capacity. The head of the Federal Network Agency (regulatory office for electricity, gas, telecommunications, post and railway markets), Klaus Müller, called for “much greater flexibility in supply and demand.” Discussions are underway about more private energy storage facilities and smart electricity meters, for example. Müller nevertheless urged haste in the construction of new gas-fired power plants and alternatives. There is “an urgent need for new controllable capacities,” he said.

The head of the Federal Cartel Office, Andreas Mundt, furthermore called for the upcoming tenders for new controllable capacities to be used “ by all means ” to “ reduce the high market concentration in the electricity generation market.” However, according to the Spiegel report, the protracted negotiations in Brussels mean that the timetable for the tenders for the new gas-fired power plants is now unlikely to be met. It is unlikely to happen this year.

Meanwhile, the Hamburg-based energy company “1Komma5°” has officially lodged a complaint against the German government in Brussels over Reich’s gas plans. The planned payments are “distorting competition and unnecessarily driving up the costs of the energy transition,” the company said.