Supercharging Power: Uniper Pushes for Swift Gas Power Plant Advancement - Vattenfall Warns of Excessive CapacityExpansion
Uniper pushes for swift growth of gas power plants - Vattenfall issues caution over excess capacity - Power plants relying on gas: Uniper initiates swift growth - Vattenfall expresses concerns about excessive capacity
Uniper's CEO, Michael Lewis, recently raised a call to speed up greenlighting processes for gas power plants, declaring, "We need the German speed when it comes to gas power plants" to Süddeutsche Zeitung. The push comes after the German government's push for constructing LNG import terminals, following the Russian invasion in 2022.
On the speed front, Germany should bear down on gas power plant development. According to Lewis, the nation needs more dependable capacity: power plants that can remain steadfast in the face of adversity. The current capacity gap is already evident, and it's likely to widen by 2030, Lewis warned. Uniper, being an ex-heavyweight in the gas sector with Russia, previously underwent a state-led rescue in 2022.
Contrarily, Vattenfall CEO Robert Zurawski feels the federal government's expansion strategy could be a tad excessive. "20 gigawatts is too much from our viewpoint," he shared with Redaktionsnetzwerk Deutschland (RND). "Gas power plants can only generate — that's the old world." Rather, Zurawski advocates for beefed-up storage capacity to manage bottlenecks.
The bid for more gas power plant capacity in Germany amounts to 20 GW by 2030, with aspirations of establishing gas-fired power plants across the nation via technology-open auctions to fortify grid stability as the country transitions from coal and nuclear energy[1][2][3]. The government attaches importance to seamlessly integrating Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU) technologies to achieve climate neutrality by 2045[1][2]. Additionally, focus is placed on hydrogen-ready gas turbines, in the hopes of eventually transitioning to environmentally-friendly hydrogen fuels[5].
Nonetheless, the expansion of gas power plants encounters hurdles such as reassuring fuel supplies and integrating these plants with renewable energy sources. The passage of a draft law for a 12.5 GW gas plant tender in the Bundestag in Q4 2024 was blocked, suggesting legislative roadblocks[4]. To stabilize the power system, there's an emphasis on implementing storage units and feed-in mechanisms, with renewable power installations anticipated to be market-ready and backed by market incentives[3].
[1] Climate Change - Carbon Capture and Utilization (CCU)
[2] Carbon Capture, Use and Storage (CCUS) in Germany
[3] Renewable Energy Sources Consumption Obligation - REN21
[4] Draft Law for a 12.5 GW Gas Plant Tender
[5] Hydrogen Power Plants: EnBW's Foray into the Future
- Uniper, a former gas sector heavyweight, advocates for swift procedures in approving gas power plants, given the current capacity gap that is expected to widen by 2030.
- Michael Lewis, Uniper's CEO, argues that Germany needs more dependable capacity, particularly gas power plants, to maintain stability as the country transitions from coal and nuclear energy.
- Despite Uniper's push for gas power plant expansion, Vattenfall's CEO, Robert Zurawski, considers the federal government's strategy excessive, preferring increased storage capacity over more gas power plants.
- The push for gas power plant capacity amounts to 20 GW by 2030, with the intention of establishing gas-fired power plants across the EC countries via technology-open auctions.
- Implementing storage units and feed-in mechanisms, as well as transitioning to environmentally-friendly hydrogen fuels, are key focuses in integrating new gas power plants with renewable energy sources.
