Germany is moving forward with a strategy to build new gas-fired power plants, a plan initiated under former Economics Minister Robert Habeck of the Green Party and continued by his successor, Katherina Reiche of the CDU. The move, approved by the European Union, will allow for the commissioning of 12 gigawatts of new gas capacity in 2026. However, the question of who will pay for these plants remains a significant concern.
The EU’s approval is contingent on the plants operating as a bridging technology, activated only when renewable energy sources are insufficient to meet demand. The government is subsidizing the construction of these facilities to ensure economic viability for the companies involved, but the ultimate financial burden could fall on consumers.
According to reports from Welt, citing a response from the Ministry of Economic Affairs to a question from a Green Party politician, a surcharge on electricity bills is a likely outcome. The response indicated that capacity mechanisms, like the power plant strategy, are typically financed through a levy. This levy is expected to be introduced with the “Law on Capacity Markets” in 2027 and begin being collected in 2031.
The exact cost to consumers remains unclear, as the final details of the financing plan are still under discussion. However, a calculation by the Association of New Energy Providers (bne) in October 2025, based on data from the Ministry of Economic Affairs, estimated potential surcharges between 340 and 435 billion euros. This calculation was based on an earlier plan for 20 gigawatts of new gas capacity.
The proposed “capacity market” will function as an auction where electricity producers submit bids, and state subsidies are awarded to the most competitive offers. The Ministry of Economic Affairs has stated that the degree to which the plants will be subsidized through surcharges and federal funds will be determined during the upcoming legislative process.
Frequently Asked Questions
What is driving the need for new gas-fired power plants?
The new gas-fired power plants are intended to address potential energy supply gaps during periods when renewable energy sources are insufficient, a situation referred to as “Dunkelflauten.”
Who is responsible for approving the construction of these plants?
The construction of the plants required approval from both the German government and the European Union.
When is the surcharge on electricity bills expected to begin?
The surcharge is expected to be introduced with the “Law on Capacity Markets” in 2027 and begin being collected in 2031.
As the details of the financing plan are finalized, it remains to be seen how significantly these new gas-fired power plants will impact the cost of electricity for German consumers. Will the benefits of increased energy security outweigh the potential financial burden?
