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Power plant strategy: How new gas power plants with 12.5 GW are planned to emerge

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Published: July 9th, 2024,
Last updated: January 4th, 2025

Demonstration for the natural gas phase-out in front of Vattenfall power plant in Berlin 2021.

With a „Power Plant Security Act“ (KWSG), the Ministry for Economic Affairs aims to implement the construction of new climate-friendly power plants in several phases to ensure supply security. Overall, the government, with EU approval, can subsidize the construction of 12.5 GW of power plant capacity. This was announced by Economy Minister Robert Habeck following the government’s agreement on the federal budget for 2025. The new law is intended to prepare a capacity market for power plants that will regulate short-term power plant capacity offerings in the future.

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