Cranking up the Gas: Reich's Plans for Gas Power Plants in the South, Plus Bonuses
Advocating for Gas-Fired Power Plants in the Southern Regions, with Incentives Included
Get ready for more gas power plants, especially in the South of Germany, as per Federal Minister of Economics, Katherina Reich. And there's a bonus in it for the Southern region! But affordability of energy is on the radar too.
After attending a cabinet retreat led by Bavarian Minister-President Markus Söder in Gmund am Tegernsee, Reich revealed the government's intentions. "We're eyeing a South bonus that will account for two-thirds of the total capacity granted in the tech-savvy South," she said, referencing CDU politics.
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A couple of weeks back, Reich announced her eagerness to expedite the arrival of new gas power plants in Germany. Now, she emphasisized Bavaria's advantage not just from the power plant strategy, but also from the first 20 gigawatts' tender that Germany aims to create by 2030. Discussions with the EU Commission are in full swing to secure the green light for these state aids, to preventDistortions within the EU.
The strategy behind these new power plants centers on slashing electricity prices for companies to restore their competitiveness, Reich explained. Germany's current electricity costs aren't exactly competitive, so this is a major concern. The federal cabinet is on track to decide on the first relief measures before the summer break.
Reich on a Mission: Cutting Grid Fees, Taxes, and Grid Charges
Relief measures include trimming the electricity tax, lowering grid fees, and reducing the gas storage burden. High energy costs are currently prompting investments to head to countries with cheaper electricity and energy bills.
The EU Puts the Kibosh on Sustainability: Schneider and Reich's Disagreement over Nuclear Power
Reich emphasizes that supply security, climate protection, and affordability must find equilibrium in a harmonious triangle once more. Approval must be retained for existing exceptions, such as energy-intensive industries, like those entitled to electricity price compensation.
- Katherina Reich
- Gas
- Energy Industry
- Energy Prices
- Energy Supply
Enrichment Insights:
- Capacity Allocation: Two-thirds of the total capacity for new gas-fired power plants are to allocated in the Southern region of Germany. This includes a broader national goal of developing 20 gigawatts of gas-fired power plants, with ongoing discussions with the EU Commission regarding the tender process.[1]
- Impact on Energy Affordability: The primary objective of the plan is to reduce high electricity prices for companies, making them more competitive. This is crucial as high energy costs currently deter investments in Germany, with companies opting for locations with lower energy prices.[1]
- Competition Enhancement: By investing in new energy infrastructure, Germany aims to improve its economic competitiveness. Lower energy costs can attract investments and stimulate economic growth in regions like Bavaria.[1]
- Relief Measures: The federal cabinet is considering additional relief measures, including reducing electricity taxes, easing grid fees, and adjusting the gas storage levy. These measures are intended to be decided before the summer break and are part of a broader strategy to enhance energy affordability and competitiveness.[1]
- Impact on Energy Competition: The "South bonus" can boost regional energy competition by providing a competitive edge through lower energy costs and improved infrastructure. It aligns with broader efforts to make Germany's energy market more attractive for businesses and investments, potentially reversing the trend of businesses opting for regions with lower energy costs.[1][2]
[1] Source: ntv.de
[2] Source: Regionaltageszeitungen gemeinsam tun.
- Katherina Reich is advocating for the expansion of gas power plants, particularly in the South of Germany, to reduce energy costs for businesses and increase competitiveness.
- The South of Germany is expected to receive a two-thirds share of the total capacity of new gas-fired power plants aimed at generating 20 gigawatts by 2030. However, discussions with the EU Commission are necessary to secure approval for these state aids.
