Germany to launch tenders for hydrogen-ready gas power plants

The German government will launch tenders for 5 GW of new hydrogen-ready gas power plants and 2 GW of “comprehensive H2-ready modernisations” in the near future, it announced on July 5. These gas power plants must switch to green or blue hydrogen operation from the eighth year of their commissioning in accordance with the National Hydrogen Strategy.

In anticipation of a comprehensive capacity mechanism, a total of 12.5 GW of power plant capacity and 500 MW of long-term storage will be put out to tender, Germany’s ministry for economic affairs and climate action said.

Apart from the hydrogen-ready gas power plants, Germany also plans to tender another 5 GW of new gas-fired power plants. These represent a "bridge" to a comprehensive, technology-neutral capacity mechanism that is to be operational from 2028, the ministry added.

The power plants are to be built predominantly in the so-called “grid south” of Germany to reduce redispatch costs and contribute to grid stability. The first tender is planned for the end of 2024 or the beginning of 2025.