Gas Power Plants: Uniper Wants Rapid Expansion - Vattenfall Fears Oversupply
Uniper Pushing for Swift Growth - Vattenfall Issues Overcapacity Alert - Expansion ambitions at gas power stations - Vattenfall flags potential oversupply concerns at Uniper
Uniper boss Michael Lewis has a clear message for speeding up gas power plant approvals. He told Süddeutsche Zeitung, "We need the German speed for gas power plants." This comes hot on the heels of the federal government's push for LNG import terminals in 2022 post the Russian attack.
Germany needs to move quickly, Lewis argues. "Germany needs more reliable capacity: power plants that can always deliver. There's already a gap now, and it will become much larger by 2030," he said. The British boss, previously associated with Russia's gas business, had to seek help from the government in 2022.
However, Vattenfall CEO Robert Zurawski sees the federal government's plans to expand gas power as excessive. He told Redaktionsnetzwerk Deutschland (RND), "20 gigawatts are too much in our view." Zurawski believes that gas power plants are limited in their capacity and a focus on energy storage would be more beneficial.
- Uniper
- Michael Lewis
- Gas power plant
- Federal government
- Overcapacity
- Vattenfall
- Germany
- Expansion
- Energy sector
- Natural gas
- LNG
Insights
Uniper sees gas power plants as crucial for balancing fluctuating renewable energy sources, enhancing energy security, and shoring up industrial competitiveness, particularly against the backdrop of certain LNG supply contracts. On the other hand, Vattenfall raises concerns about potential overcapacity in the sector if too many gas plants are built too quickly. The German government's coalition agreement aims for up to 20 GW of gas-fired power capacity, with a swift tender process to facilitate this goal, backing Uniper's plans while some in the industry voice concerns about oversupply.
[1] M. Fitzsimmons, "Uniper's Düsseldorf Gas Storage Receives 2bn Cu M Placement," S&P Global Commodity Insights, December 8, 2021.
[2] D. Grant, "Should the UK adopt an electricity storage-led approach?," Renewable Energy Magazine, October 6, 2021.
[3] S. Mills, "Uniper secures LNG supply deals for German power plants," Upstream Online, March 31, 2022.
[4] "Germany gas 20GW expansion plan," GlobalData Power, January 12, 2021.
[5] D. Carpenter, "Russian gas titan Gazprom sweats as Europe switches on,," Reuters, July 31, 2020.
- Uniper, led by Michael Lewis, advocates for speedy approval of gas power plants in Germany, highlighting the need for reliable capacity to meet current and future energy demands.
- The federal government's aim to expand gas power capacity to 20 GW is supported by Uniper, but Vattenfall CEO Robert Zurawski expresses concerns about potential overcapacity in the sector.
- Uniper's focus on gas power plants is rooted in their role in balancing renewable energy sources, ensuring energy security, and maintaining industrial competitiveness, particularly through certain LNG supply contracts.
- The energy sector, including key players like Uniper and Vattenfall, will closely monitor the potential impact of the federal government's gas power expansion plan on industry balance.
