Pouring on the Gas: Reiche's Plan to Boost Gas Power Plants in the South with a Bonus
South advocate, Rich, endorses gas-fired power plants expansion in southern regions, offering incentives
Katherina Reiche, the Federal Minister of Economics, is hell-bent on ramping up gas power plants, especially in Southern Germany. To make this happen, she's got a nifty idea: a "South bonus."
"We're shooting for two-thirds of our total capacity to be built in the technical South with this bonus," Reiche said after hitting up a cabinet retreat with Bavarian Minister-President Markus Söder in Gmund am Tegernsee. That's 20 gigawatts of power, all set to be in place by 2030.
Politics and the Power Plant Pushback
A few weeks back, Reiche made headlines by declaring her intention to quickly bring new gas power plants to Germany. Now, she's emphasizing Bavaria's benefits from her power plant strategy and the first 20 gigawatts Germany wants to create by 2030. The feds are currently deep in talks with the EU Commission about the tender, hoping to get the green light on these state aids to prevent breaking competition rules within the EU.
Keeping it Real: Affordability and Energy Relief
Reiche's mission? To bring Germany's sky-high electricity prices down to Earth, right back to a level that makes businesses competitive once more. "Energy costs have gone haywire," Reiche said. "We need to dive back into the affordability conversation." The federal cabinet will vote on the first relief measures before the summer break.
Cutting Costs: Lowering Taxes, Fees, and the Hidden Expenses
To bring the cost of energy under control, Reiche is eyeing reductions in the electricity tax, slashing grid fees, and cutting the gas storage surcharge. With high energy prices driving investments overseas, where electricity and energy costs are cheaper, Reiche's plan could encourage businesses to stick around inside Germany's borders.
Sustainability and the South Bonus: Striking a Balance
"Supply security, climate protection, and affordability must find their harmony in a perfect balance once more," Reiche insisted. She's also keen to maintain existing exemptions for energy-intensive industries, like electricity price compensation.
Sources: ntv.de, as/dpa/rts
- Katherina Reiche
- Gas
- Energy Industry
- Energy Prices
- Energy Supply
Insight:
The "South bonus" aims to beef up gas production in Southern Germany, particularly addressing the region's lower share of renewable energy production compared to the north. This incentive is part of a broader strategy to build new gas-fired power plants, with two-thirds of the planned 20 gigawatts of capacity to be constructed in Southern states. This push is aimed at stabilizing the energy grid during low renewable energy production periods. However, the EU is reviewing the plan to ensure it complies with state aid rules. Unlike previous plans, the current strategy focuses on carbon capture technologies to minimize emissions.
- Katherina Reiche's proposal, known as the "South bonus," is designed to boost the construction of gas power plants predominantly in Southern Germany, which has a smaller share of renewable energy production compared to the northern regions.
- The energy industry is closely watching the negotiations between the German federal government and the EU Commission regarding the potential tender for the "South bonus," as it could determine whether the plan complies with EU competition rules.
- In an effort to lower energy costs and make businesses more competitive, Katherina Reiche is considering various measures, such as reducing the electricity tax, decreasing grid fees, and lowering the gas storage surcharge.
