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German Government Agrees on New Power Plant Strategy

The plans foresee the construction of up to ten gigawatts of natural gas power plants that will later be converted to hydrogen.

The Chancellor’s Office, the German Finance Ministry and the Ministry for Economic Affairs and Climate Action announced the compromise decision. It clears away an obstable to shutting down Germany’s coal-fired power plants, a key element of the country’s transition to clean energy. 

The first tenders for constructing the plants will be issued in the first half of 2024, the three government bodies said. The strategy will cost the government between EUR 15 and 20 billion euros in subsidies for construction and for initial operation with hydrogen. 

The plants will be converted to clean hydrogen between 2035 and 2040, with the exact date to be determined in 2032.

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