Concerns Rise Over Predilection for Gas-Operated Energy Plants in the South
Energy Company Leag Protests "South Bonus" for Gas Power Plants
In Cottbus, over a thousand employees of energy company Leag took a stand against the potential disadvantage they face in the construction of new gas power plants. The stir comes following comments by Germany's Federal Minister for Economic Affairs, Katherina Reiche (CDU), suggesting a concentration of new gas power plants in the south of Germany, known as the "south bonus."
Uwe Teubner, the head of the Leag works council, expressed his frustration, stating, "Fair play looks different." The disgruntled employees rallied at the football stadium in Cottbus for a staff meeting, holding banners with the slogan "No Blackout" and "Transformation Bonus Instead of South Bonus."
Leag CEO Adolf Roesch urged the federal government for clear direction, stressing the importance of gas power plants being constructed equitably across Germany. The company is planning to construct hydrogen-capable gas power plants in Schwarze Pumpe, Brandenburg, and Lippendorf, Saxony.
Southern Emphasis of Gas Power Plants
Reiche's vision for a focus on gas power plants in the south of Germany has sparked controversy. The proposed plan aims to allocate two-thirds of the total power plant capacity to the southern grid area[2][4]. In early June, Reiche made these comments in Bavaria, noting the efforts to strengthen the power grid and ensure energy security in the south, which has been affected by recent energy transitions and nuclear plant shutdowns.
The plan calls for the construction of up to 20 gigawatts of power plant capacity and state funding, subject to EU Commission approval. Gas power plants are expected to step in when renewable energy sources cannot meet electricity demand, particularly in situations with little sun or wind[2].
Leag's Shift Toward Renewable Energy
Lusatia-based brown coal company Leag is diversifying its business with investments in wind energy, photovoltaics, and battery storage, in response to the agreed-upon coal phase-out. The region is undergoing a significant structural change, with no electricity to be generated from brown coal after 2038. Teubner advocates for a transformation bonus for investors instead of the controversial "south bonus."
Difficult Conditions for Leag
Roesch acknowledged the challenging circumstances facing Leag, stating that the company made more than expected in the first quarter of the year. However, in periods of high solar and wind energy production, Leag's demand decreases significantly, and over the Pentecost weekend, the company lost more than two million euros in contribution margin.
When asked about job security, Roesch warned the employees that he cannot make promises he cannot keep. However, he assured them that Leag will utilize its financial resources to secure their future. Hailing from regions like Lusatia, traditional coal-reliant areas, these energy companies face uncertainty regarding future investments and employment as Germany transitions to renewables. Many see the "south bonus" as evidence of regional favoritism and unequal government support.
- Leag's protest against the "South Bonus" is a reflection of the industry's concern about the proposed concentration of new gas power plants in the south, as it may lead to financial disadvantages for companies like Leag.
- The energy industry is in a state of transition, with Leag shifting towards renewable energy investments, but the company still relies on gas power plants, and a focus on the south may create challenges for equitable finance and energy distribution across Germany.
