Germany's main energy associations are divided over the proposed power plant safety law, known as KWSG (Kraftwerksstandortgesetz). This project, led by the Ministry of Economic Affairs and Climate Protection (BMWK), aims to introduce tenders for a capacity of 10 GW of scalable, hydrogen-ready gas power plants.
BMWK confirmed on November 25 that the project is in the final stages of coordination within the government. However, its adoption by Parliament remains uncertain, in a context of political tensions and early elections. The planned dissolution of the Bundestag in February 2025 after a vote of no confidence, scheduled for December 16, could compromise its approval.
Zukunft Gas pleads for rapid adoption
The Zukunft Gas association, representing the interests of the gas and hydrogen sector, calls for rapid adoption of the KWSG by Parliament. According to Timm Kehler, Managing Director of Zukunft Gas, this project is crucial to accelerating the phase-out of coal and supporting the development of intermittent renewable energies through flexible and controllable gas plants.
“The question of the future of the power plant fleet must be at the top of the priorities of the first 100 days of the next government,” Kehler said, while deploring the current political instability.
BDEW warns of financial risks
The Association of Public Utilities (BDEW) is concerned about the proposed financing conditions, which it considers unattractive for private investors. Kerstin Andreae, managing director of BDEW, highlighted the challenges of limited hydrogen availability and technological delays, making projects risky for banks and investors.
BDEW advocated for adjustments in the regulatory framework to ensure the economic viability of projects. “Lawmakers must act quickly to avoid a slowdown in the development of much-needed production capacity,” insisted Andreae.
The BEE calls for a complete overhaul
On the other hand, the association for renewable energies (BEE) rejects the project in its current form. It calls for transforming the KWSG into a flexibility security law, adapted to the growing needs for grid flexibility. For the BEE, the current project lacks ambition in terms of integrating renewable energies and does not meet market requirements.
Blockage of the CDU/CSU opposition
The CDU/CSU parliamentary group, the main opposition party, has expressed its opposition to any legislative initiatives from the current coalition. Instead of supporting hydrogen-ready power plants, the CDU/CSU proposes further exploring carbon capture and storage (CCS) technologies to reduce emissions from conventional power plants. The party also refuses to bring forward the dates for the closure of coal and lignite power stations, currently set at 2038.
Next steps and political uncertainties
The bill benefits from agreement in principle from the European Commission to comply with state aid rules. The cabinet is expected to examine it in early December. However, political instability and the risk of dissolution of Parliament in 2025 could delay or block its adoption.
