Environmental Action Germany (DUH) and the energy cooperative Green Planet Energy have filed a complaint in Brussels against the German government’s Electricity Supply Security and Capacity Act (StromVKG), which provides for the tendering of new gas-fired power plants later this year. DUH and Green Planet Energy stated on Tuesday that the legislation is contentious from a competition law perspective. Furthermore, they argued that it conflicts with the goal of the “AccelerateEU” package, which aims to reduce Europe’s reliance on fossil fuel markets and energy sources for electricity generation.
DUH and Green Planet Energy based their complaint on the assertion that the StromVKG is “de facto” tailored to new gas-fired power plants and that the tender processes are not technology-neutral. Consequently, they argue, the act violates European state aid and competition laws.
The legislation provides for the tendering of facilities with a combined initial capacity of around ten gigawatts, starting as early as September. In early July, the Ministry of Economic Affairs stated: “Contracts will be awarded to facilities capable of supplying electricity continuously over an extended period.” This effectively excludes alternatives to gas-fired power plants, such as large-scale energy storage systems.
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The new power plants require state subsidies because they are intended to serve as backup for periods when electricity from renewable sources is insufficient. Given such limited operating hours, they would not be economically viable to run without financial support.
According to DUH and Green Planet Energy, the calculated maximum subsidy amount over the planned 15-year operational period stands at just under 33 billion euros. The federal government intends to regulate the financing through a separate piece of legislation; a levy on consumers is also under consideration. “The new law aims to launch a long-term subsidy scheme for gas-fired power plants costing billions—at the expense of consumers and businesses,” criticized Nils Müller, a board member at Green Planet Energy.
DUH and Green Planet Energy report that the federal government seeks EU approval for the state subsidies via an accelerated preliminary review process. On Tuesday, they called on Brussels to initiate a formal investigation. Key aspects to be examined include whether the subsidy violates the principle of technology neutrality and whether less market-distorting alternatives were adequately considered. “Decisive factors should be costs, climate impact, availability, and the speed of implementation—not political favoritism toward fossil-fuel power plants.”
Responding to an inquiry from AFP on Tuesday, an EU spokesperson stated that discussions regarding the approval of the StromVKG (Power Plant Security Act) are ongoing. He noted that he could not comment on the precise timeline. “However, we will continue working on this and make progress as quickly as possible.”
Author: AFP – ilo/pe
Sources: AFP Press Portal