The proposed Power Plant Security Act in Germany, or Kraftwerkssicherheitsgesetz (KWSG), has generated significant interest among stakeholders looking to build or modernise gas-fired power plants and other actors in the power sector.
The act introduces tenders for 13 GW of dispatchable power generation capacity from 2025. Our latest report considers how the proposed auction design will impact both new and existing gas-fired power plants. It provides an in-depth assessment of the auction design and its the policy’s importance for counteracting the emerging shortage of dispatchable power in Germany.
Download it now for analysis on:
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- Proposed auction design: We examine how the auction design influences asset profitability – e.g. the South bonus or the clawback
- Hydrogen infrastructure and conversion timeline: We explore the relationship between the tenders and plans for hydrogen pipeline infrastructure and how CAPEX requirements, along with fuel conversion rules, impact investment decisions for H2-ready plants
- Market developments and asset economics: We show that different views on the design of a future capacity market and the pace of power sector decarbonisation can lead to significant differences in the expected profitability of gas-fired power plants.
- Anticipated total costs: We provide an estimate of the total budget needed to support the power plant buildout, comparing it to the figures presented in the consultation papers
Download the full report now for detailed findings and recommendations.
