Energy
Germany Reaches Preliminary Agreement with European Commission on Power Plant Strategy
Germany’s power plant strategy has cleared a final hurdle with a preliminary understanding reached with the European Commission subject to its final approval of draft legislation. The plans represent a major step in the country’s security of energy supply objectives.
Jan 16, 2026
The Federal Ministry for Economic Affairs and Energy has announced that it has reached an agreement with the European Commission on the general outlines of the country’s power plant strategy.
The ministry announced Thursday plans to build new power plants that will see 12 GW worth of new capacity created. The key points of agreement form the framework for the implementation of a raft of measures to safeguard electricity supply in Germany in accordance with European requirements. The proposals will see 10 GW of long-term capacity – focused on but not exclusively limited to moder gas-fired power stations – already put out to tender this year. The remaining 2 GW for controllable capacities will be assigned to other technologies – including storage – with tendering following in 2027 and 2029-30.
The proposed “hydrogen ready” power plants are expected to be operational by 2031. No fixed date has been set for the switch from gas to hydrogen but the new power facilities should be able to run on hydrogen by 2045 as part of the country’s long-term climate neutrality objectives. Once completed, the proposed draft legislation must be submitted for final state-aid approval from the European Commission.
