Security of supply: Berlin specifies rules for dark power plants

Six projects of former lignite-fired power plants have already received contracts for converting them into gas-fired power plants. A regulation should now clarify what applies to future tenders.

Coal-fired power plants may only be converted into backup gas power plants under certain conditions. The Federal Ministry of Economics wants to make this clear with a regulation.

Berlin. The Federal Ministry of Economics wants to specify the rules according to which electricity companies can take part in tenders for dark gas power plants. The ministry is primarily looking at existing coal-fired power plants that can be converted to run on natural gas, so-called fuel switch projects. A regulation is now intended to make it clear, among other things, that bids can only be submitted for coal-fired power plants to be converted that have already been shut down or must be shut down by January 1, 2030 at the latest.

The new gas power plants are intended to ensure security of electricity supply as part of the gradual phase-out of coal-fired power generation planned by 2038. As backups, they are primarily intended to ensure that there is still enough electricity when there is not enough energy generated from wind and sun.

The new systems will initially burn natural gas. By 2045 at the latest, the gas power plants should be running on climate-friendly hydrogen. The operators receive a fixed remuneration for maintaining the systems. It is to be financed through a levy that is to be levied on all electricity consumers.

The first contracts were also awarded to six “fuel switch” projects

In the first round of tenders, almost all of the contracts went to projects run by the energy companies RWE and Leag. Six Leag projects in Brandenburg and Saxony are “fuel switch” projects in which former lignite-fired power plants are to be converted.

The ministry announced on Tuesday evening that it was about creating additional electricity generation capacity. According to the Electricity Supply Security and Capacity Act (StromVKG) from November 1, 2031, they are intended to ensure security of supply.

According to the law, investments in the construction of a new plant or in expanding the capacity of existing plants are required, among other things. Investments in modernization, on the other hand, cannot be counted towards achieving certain “minimum investment thresholds”.

The coal phase-out must not be brought forward because of the StromVKG

The ministry emphasized that a fuel change would only be recognized as a “new installation” if it actually brought additional power to the grid. However, if a coal plant can remain in the system beyond 2030 according to another law, it is not considered a new construction if it is converted into a gas power plant. “In these cases, no additional capacity is created,” the statement said.

This makes it clear that the coal phase-out cannot be brought forward because of the StromVKG, the ministry continued. The aim of the law is to have sufficient capacity in the system by 2031. “Therefore, the StromVKG and the specification provided by the regulation stipulate that there is no incentive to bring forward the closure of coal-fired power plants.”

The next round of tenders has already begun

The ministry explained that the “specifications” would not affect the awards in the first round of tenders. “All of the awarded bids meet the conditions laid down in the law, even taking into account the details that have now been made,” it said. The ministry further stated that the results of the first bidding date were a “great success”.

The regulation should come into force soon. The next round of tenders has already begun. Energy companies can submit bids until December 29th. A total power generation capacity of 3,840 megawatts is to be awarded.