German Government Faces Uncertain Costs for New Gas Power Plants, EU Deal Leaves Consumers in Limbo

German Government Faces Uncertain Costs for New Gas Power Plants, EU Deal Leaves Consumers in Limbo

After reaching a framework agreement with the European Commission on building new gas power plants, it remains unclear how the costs will be borne by electricity customers in Germany.

The Federal Ministry of Economics replied to a written question from Green Bundestag member Michael Kellner-reported by Die Welt-by stating that the financing of the so‑called plant strategy will be covered by an additional levy.

“The design of the levy is currently under discussion, so its exact amount cannot be estimated yet” says State Secretary Frank Wetzel. “The levy will only be introduced with the capacity‑market law in 2027 and will be collected from 2031 onward” he adds.

Kellner criticises the lack of cost transparency. “It’s hard to believe that the federal government does not know how much the electricity price will rise because of the plant strategy” he told Die Welt. “The important thing is to avoid sizing the capacity market too large, to issue it truly technology‑open, and not to cling only to fossil gas”.