German government agrees with EU on funding guidelines for new power plants
2023/8/4
The Deutsche Presse Agency reported that when transforming the power system, the German government mainly relies on renewable energy such as wind energy and solar energy. But in order to ensure energy supply security in "dark times", the German Ministry of Economic Affairs is planning a national power plant strategy as a supplement.
Relevant plans must be approved by the European Commission, and now the two sides have reached an agreement on the basic agreement to expand the new power plant. Harbeck spoke in Hamburg on Tuesday of a "political breakthrough" for building carbon-free power plants.
The Economy Ministry said the progress with the European Commission was an important first step, providing a roadmap for "decisive steps", even if it did not mean that the planned measures had been approved under state aid law. The next step is the consultation phase, which should begin in late summer. Thereafter, the EU state aid procedure should also continue.
The German government aims to generate 80% of Germany's electricity consumption from renewable sources by 2030, up from just over 50% currently.
Harbeck said there will always be periods when there is not enough wind and sunshine, so "controllable" power plants should step in as a "backup" to meet electricity demand. Security of supply will always be a top priority. Starting next year, up to 30 GW of new power plant capacity will be tendered. The minister spoke of "maybe" 20 new power plants.
Investment grants for new power plants could amount to billions of euros. Funding details have yet to be determined. Habeck said the aim is to produce "green hydrogen" based on renewable energy. But "blue hydrogen" is also better than natural gas or coal. Power plants can choose to use "blue hydrogen", such as hydrogen imported from Norway.
The German energy industry welcomed Habeck's basic agreement with the European Commission, and they called for a faster implementation of the strategy.
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