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German Gas-Plant Plan Faces EU Challenge as 1Komma5° Files State-Aid Complaint

The complaint intensifies the EU state-aid review of Germany’s two-phase gas-capacity plan.

Overview

  • 1Komma5° formally asked the European Commission to examine Germany’s Kraftwerksstrategie, arguing construction subsidies plus a central capacity market would distort competition and sideline virtual and other decentralized resources.
  • The Federal Ministry for Economic Affairs says its talks with the Commission remain ongoing and confidential, while the first tender that Reiche flagged at 5–10 GW has not yet launched.
  • The proposed design would support new plants this decade and later pay for firm availability rather than generated electricity, with eventual costs expected to land with power customers.
  • Capacity needs remain contested, ranging from a little over 10 GW cited by energy economist Andreas Löschel to 22.4 GW if government targets are met and up to 36 GW in a delayed-transition scenario from the grid regulator.
  • Technical analysis highlights unresolved choices between hydrogen-readiness and carbon capture, noting that operating at high hydrogen shares is costly and difficult, which reinforces calls for technology-neutral rules.