Germany must quickly award tenders for new natural gas capacity to replace coal plants if it hopes to meet its goal of phasing out coal in power generation by the end of the decade, according to Uniper, a leading energy company.
Earlier this year, Germany announced plans to tender 10 gigawatts (GW) of new natural gas-fired capacity. These power plants could eventually be converted to hydrogen in the 2030s. This move aims to ensure a stable electricity supply as the country increases its reliance on wind and solar energy.
After shutting down its remaining nuclear power plants last year, Germany is now looking to balance its power generation and transmission systems with new gas plants. The economy ministry indicated that these plants should be ready for hydrogen conversion between 2035 and 2040. Additionally, Germany has accelerated its coal phase-out to 2030, moving up from a previous target of 2038. However, after Russia cut off natural gas supplies to Germany, some coal-fired plants that had been shut down were restarted during the last two winters.
Michael Lewis, CEO of Uniper, explained in a Bloomberg interview at the Gastech conference that the company cannot shut down its coal plants yet. They need gas-fired capacity to maintain system stability. “We want to close coal as quickly as possible. We want to build new gas plants that can be converted to hydrogen later,” he stated.
Lewis emphasized the urgency of the situation, saying, “The sooner we start the auction process next year, the sooner we can begin building those plants.”
Uniper, which required a government bailout at the start of the European energy crisis in 2022, has committed to investing over $8.9 billion (8 billion euros) in green energy by 2030. The company aims to transition to a greener energy provider more rapidly than initially planned.