Germany awards €12bn in support for 5.16 GW of new power capacity

Germany awards €12bn in support for 5.16 GW of new power capacity

Germany’s energy regulator has awarded support to 11 projects with a combined capacity of 5,160 megawatts, part of a plan to keep electricity available when wind and solar output falls short. The first tender carries an estimated value of about €12 billion.

A total of 41 bids were submitted. RWE and LEAG won most of the capacity, while one project went to Stadtwerke Karlsruhe. Reuters reported that LEAG secured about 3 gigawatts and RWE 2.12 gigawatts; Uniper received no allocation in this round.

The plants are expected to be available by 2031 at the latest. Operators will receive payments over 15 years for keeping capacity ready to generate electricity during periods of weak renewable output.

The support is expected to be financed through an additional levy on electricity consumers. The impact on household and business bills has not yet been quantified, making the decision significant both for energy security and future power costs.

Germany plans to tender 11 to 12 gigawatts of additional capacity. The regulator is due to announce the dates for the next round on November 10, with further tenders expected in December and in 2027.