Plans by German Minister for Economic Affairs, Katherina Reiche (CDU), to incentivize the construction of new natural gas-fired power plants are facing internal opposition, according to reports in the Handelsblatt.
Thomas Heilmann, chairman of the KlimaUnion, a group comprising CDU and CSU members advocating for aggressive climate action, voiced concerns that subsidies for gas power plants could drive up electricity prices. He argued that relying on such interventions would distort the market, hindering innovation and favoring state-directed planning over rewarding flexibility and market forces. Heilmann stressed the need to allow market mechanisms to function freely.
The KlimaUnion’s criticism is supported by a forthcoming study commissioned from the energy consultancy Conenergy. The study, details of which have been shared with the Handelsblatt, acknowledges the role of natural gas plants in ensuring electricity supply during periods of low renewable energy generation. However, the study identifies alternative technologies as offering superior solutions for future energy system resilience. These include battery storage, pumped hydro storage, biomass power plants and hydrogen-powered facilities, which the study’s authors deem “optimal safeguards” within the evolving energy landscape.