Germany's New Power Plant Strategy to Introduce Capacity Market and Gas-Fired Power Plants by 2026
Germany's energy policy faces challenges with a coal phase-out by 2038, resulting in a need for new controllable power capacities. A new power plant strategy, agreed upon on January 15, 2026, aims to tender 12 GW of controllable capacities by 2026, including hydrogen-compatible gas-fired plants. This strategy marks a shift to a capacity market, providing economic incentives for new power plants. Companies must secure locations, plan permits, and ensure compliance to participate in upcoming tenders.
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Germany's energy policy is challenged by the coal phase-out by 2038, leading to potential supply shortages. A new power plant strategy was established on January 15, 2026, aiming to tender 12 GW of controllable capacities by 2026, including hydrogen-compatible gas-fired plants.
This strategy shifts from an energy-only market to a capacity market, incentivizing investment in new power plants. Companies should focus on securing suitable locations, planning permits, and ensuring compliance with state aid laws to participate in the tenders, scheduled to begin in 2026. The decarbonization goal includes transitioning 4 GW to hydrogen by 2040 and 2043, with further tenders planned through 2030.
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