Germany’s largest power producer, RWE, is intensifying pressure on the federal government to expedite the tendering process for natural gas-fired power plants, arguing it’s a critical prerequisite for achieving the nation’s 2030 coal phase-out deadline. In an interview with the “Rheinische Post”, RWE CEO Markus Krebber underscored the company’s commitment to decommissioning its coal assets by 2030, outlining plans to construct 3 gigawatts of new gas-fired capacity. However, he stressed the urgency of government action, demanding that the tender be launched in the first quarter of 2026 to enable the first gas-fired units to become operational by the end of 2029.
While acknowledging ongoing efforts within the Federal Ministry for Economic Affairs and Climate Action, Krebber highlighted a significant hurdle: securing approval for these plans from the European Union. The requirement for EU alignment adds a layer of complexity and potential delay, raising questions about Germany’s ability to meet its ambitious climate targets.
Adding a layer of political intricacy, RWE has signaled a willingness to extend the operation of the Garzweiler open-pit mine, an action that would push back the coal phase-out timeline, contingent upon specific conditions. Krebber indicated that a review of the exit date by the federal government in 2026 would determine whether the coal-fired power plants must remain in standby mode for an additional three years beyond 2030. Crucially, RWE stipulated that if such a scenario were to arise, the state would be obligated to cover the costs associated with maintaining the reserve capacity and procuring the necessary CO2 certificates. This demand effectively transfers significant financial risk to the government, prompting scrutiny of the potential taxpayer burden.
The transition is also triggering workforce adjustments, with RWE anticipating a reduction in the number of employees who will transition into retirement through adjustment payments. Currently, approximately 6,000 employees are involved in the company’s brown coal operations, a number expected to dwindle to around 2,000 by 2030.
Further emphasizing the need for a streamlined process, Krebber advocated for a “lean” tendering process, arguing against mandated timelines for transitioning from natural gas to green hydrogen. He believes such decisions should be left to market forces. Crucially, he also demanded “investment security” highlighting the need for a minimum guaranteed remuneration for these “peaker” plants, which are intended to function only when renewable energy sources prove insufficient to meet demand. He argued this would ensure that the most cost-effective bidders are selected in the tender process, positioning RWE’s strategy as prioritizing economic efficiency alongside environmental objectives. The requests reveal a delicate balancing act: pursuing climate goals while safeguarding the company’s financial viability and minimizing disruption to energy supply.