Southern Federal Government's Gas Power Plant Push: Heavy Emphasis on Southern Germany for Expansion
Federal authorities set sights on southern Germany for proposed gas power plants expansion
Germany's federal government is tossing a hefty portion of its investment in the proposed gas capacity expansion towards Southern Germany, promising a lucrative "Southern Bonus." Economics minister Katherina Reiche expressed this during a recent visit to Bavaria, affirming that approximately two-thirds of the newly constructed capacities would be situated in the south of the network, according to a report on ntv.de.
Reiche is currently engaged in extensive discussions with the EU Commission regarding the tender for new gas power plants. The permit for state aid will be needed to prevent undue competition within the EU. Reiche emphasized that the astronomical energy prices in Germany demand our immediate attention. To alleviate the financial strain on businesses, she announced electricity tax and network fee relief before the summer break.
On account of the inconsistent availability of wind and solar energy, the new coalition government consisting of the Union and SPD plans to establish additional gas power plants. Their ambitious target is to develop 20 gigawatts of power by 2030.
Bavarian Minister-President and CSU leader Markus Söder wholeheartedly endorsed Reiche's plans at a joint press conference in Saint Quirin am Tegernsee. He long felt Bavaria had suffered under the previous government. Now, the state is eager to secure fresh cooperation with Berlin, as he identified a "promising glimmer of hope." Söder had a tumultuous relationship with the previous Economics Minister Robert Habeck (Greens). He also expressed enthusiasm over the plan to strengthen Bavaria's connection to the hydrogen network.
Insight: Exploring the Feds' Gas Strategy Expansion
- 20 GW Ambition: The federal government's 2030 target marks a significant commitment to increasing gas power capacity, aiming to bolster grid stability and energy security during the nation's transition away from coal and nuclear energy resources[1][2][3].
- Technology Openness and CCS: The revised power plant strategy encourages a level playing field for various technologies, fostering a competitive and diverse energy landscape. The government is also now open to the use of Carbon Capture and Storage (CCS) technologies in power generation, which was previously prioritized for industrial sectors[2][3].
Implications for Southern Germany
While the federal plan does not focus specifically on Southern Germany, the region stands to benefit from the advancement of hydrogen infrastructure. For instance, Badenova has embarked on constructing Southern Germany's first hydrogen pipeline, with construction commencing in March 2025[4]. This developing hydrogen network could facilitate hydrogen integration into future power plants in the region, potentially improving grid stability and reducing emissions over time. Economic advantages, such as investment opportunities and job creation, could also materialize alongside these infrastructure developments. That being said, environmental concerns surrounding the potential long-term emissions persist, owing to the bridge role of natural gas until CCS or hydrogen conversion technologies scale at the anticipated rate[2].
- The Southern Federal Government's gas power plant push, as a part of Germany's 20 GW ambition, could lead to significant vocational training opportunities in the energy industry, as the expansion necessitates the development of diverse and competitive energy landscapes.
- With the advancement of hydrogen infrastructure in Southern Germany, such as Badenova's first hydrogen pipeline, there is a possibility for the region to receive finance for vocational training programs in areas like energy and business, fostering local employment and enhancing the community policy in the process.
