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Southern Germany to Receive Two Thirds of New Gas Power Plant Capacity, Economy Minister Says

  • Germany plans to build 20 gigawatts of new gas-fired power plants mainly in the south as backup for renewable energy sources in 2025.
  • The plan follows Germany's coal phase-out and comes as negotiations with the European Commission ensure auction rules comply with state aid regulations.
  • During a CSU party convention, Katherina Reiche, the economy minister, revealed plans to offer a 'south bonus' aimed at promoting the development of approximately two thirds of the new gas-fired power plant capacity in southern Germany, where renewable energy production is lower.
  • Reiche said the government is negotiating auctions' design and that the capacity doubles the previous government's plan at 20 gigawatts, compared to half that prior amount.
  • The new government may reduce emissions using carbon capture instead of requiring hydrogen conversion for plants, reflecting a policy shift under Chancellor Friedrich Merz.
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Center

Federal Minister Reiche wants to focus on southern Germany in the planned construction of new gas power plants.

·Germany
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Lean Right

In her agenda, Federal Minister Reiche clearly relies on more gas power plants to be built in southern Germany. In order for this to be implemented, the federal government wants to pay a "South bonus", but also the affordability of energy drives them around.

Lean Left

In the expansion of the gas power plants there is to be a "South bonus". Markus Söder recognizes in it a course correction of the traffic lights – and speaks of a "hope glimmer".

·Germany
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Lean Left

The new Minister for Economic Affairs has made a mistake, says our columnist Maurice Höfgen. Is the energy industry already missing Robert Habeck?

BN Land Representative Martin Geilhufe comments on today's press conference with Federal Minister of Economics Katherina Reiche, Prime Minister Markus Söder, and Minister of Economics Hubert Aiwanger as follows: "We are very critical of the planned expansion of the gas power plants, which are apparently to be built to a significant extent in Bavaria. New fossil infrastructure is fatal for the climate, the planned addition of 20 gigawatts is defi…

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Berliner Zeitung broke the news in on Sunday, June 1, 2025.
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