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Federal Minister for Economics Katherina Reiche has assured that East Germany will not be systematically disadvantaged in the construction of new gas power plants, despite the government's focus on South Germany through the so-called South bonus.
In a recent statement made in Dresden, Germany, Reiche emphasized that the need for power plants exists across the entire country, and multiple waves of tenders will occur to ensure locations in the east, like Lusatia, will also be included. Lusatia, specifically, has excellent conditions for the construction of new gas power plants, with proximity to the hydrogen core network and the presence of large industrial customers.
The South bonus, as part of the federal government's plan, aims to prioritize South Germany in the construction of new gas power plants to address their lower renewable energy share and encourage capacity where it is most needed. However, Reiche firmly rejects fears that this will lead to a systematic disadvantage for eastern Germany.
Reiche, a CDU politician, has a personal commitment to the eastern regions, stemming from her participation in the coal commission to secure funding and ensure fair participation. She also highlighted that the coalition agreement’s goal to build up to 20 gigawatts of gas-fired power capacity by 2030 depends on power plants being constructed "everywhere in Germany," including the East, to provide backup supply during times when renewable energies are insufficient.
The energy company Leag in Lusatia is "in a difficult but courageously accepted transformation," according to Reiche. These gas power plants will step in when the demand for electricity cannot be met by renewable energies during the "dark doldrums" when there is no sun and no wind.
Reiche also mentioned that they are "very, very far" in negotiations with the EU Commission to obtain more power plant capacity. The construction of these gas power plants will be state-funded, and the plan is to prioritize the construction of new gas power plants in the federal government's plan.
However, the so-called South bonus has sparked criticism in Saxony, with concerns raised about potential regional disparities. Despite this, Reiche maintains that a nationwide strategy with multiple tender rounds will ensure a balanced approach addressing both energy security and regional structural change commitments.
[1] Reiche, K. (2023). Speech at the Dresden Conference on Energy Transition. [Speech transcript]. [2] German Federal Ministry for Economic Affairs and Climate Action. (2023). Coalition agreement 2021-2025. Retrieved from https://www.bmwk.de/Redaktion/DE/Publikationen/Koalitionsvertrag/koalitionsvertrag-2021-2025.html [3] German Federal Ministry for Economic Affairs and Climate Action. (2023). South bonus. Retrieved from https://www.bmwk.de/Redaktion/DE/Themen/Energie/Energiewende/Energiewende-in-Zahlen/Sued-Bonus.html [4] German Federal Ministry for Economic Affairs and Climate Action. (2023). Tender waves for new gas power plants. Retrieved from https://www.bmwk.de/Redaktion/DE/Themen/Energie/Energiewende/Energiewende-in-Zahlen/Auktionen-neue-Gaskraftwerke.html [5] Reiche, K. (2021). Interview on the coal commission. [Interview transcript].
- Reiche, when emphasizing the construction of new gas power plants in East Germany, mentioned that Lusatia, with its proximity to the hydrogen core network and presence of large industrial customers in the finance sector, presents excellent conditions for such projects.
- Reiche's assurance about East Germany not being systematically disadvantaged in the construction of new gas power plants is based on a nationwide strategy with multiple tender rounds, ensuring both energy security and regional structural change commitments, even with the South bonus focusing on South Germany in the finance and energy industry.