Business · Energy & Commodities · 2 hrs ago
Germany tightens rules for subsidised gas power plants
Germany’s Economy Ministry is tightening rules for the second tender for state-supported power plants.
A coal plant switching to gas will qualify only if it had shut by 22 July 2026, or must close by 1 January 2030 under the coal phaseout law.
The ministry says this will prevent coal plants closing early to obtain subsidies.
The rules will also clarify which costs count toward a minimum investment of €431,000 per megawatt; only new plants or expansions will qualify, not simple upgrades.
The changes follow criticism of the first tender, where RWE and LEAG won most of the awards, including projects to build gas plants at former coal sites.
Previously awarded projects will not be affected, and the ministry says they meet the clarified conditions.
The regulation is expected to take effect soon.
Germany’s Economy Ministry is tightening rules for state-subsidised new gas power plants.
A coal-to-gas conversion will qualify for support only if the coal plant was already shut by 22 July 2026 or must close by 1 January 2030 under the coal phase-out law.
The rules are intended to prevent coal plants from closing early just to receive subsidies.
Only investment in new plants or expansions will count toward the minimum investment requirement; mere modernisation will not.
The new regulation will not affect awards already made in the first tender round.
- Who
- Germany’s Federal Ministry for Economic Affairs.
- What
- It will issue a regulation tightening eligibility rules for subsidised gas power plants converted from coal.
- When
- The ministry announced the decision on Tuesday evening, 10 November 2026. The regulation is expected to take effect soon.
- Where
- Germany.
- Why
- To prevent coal plants from closing early because of subsidies and to clarify which investments qualify.
Critics of the first tender round
Federal Ministry for Economic Affairs
First-round projects
Critics of the first tender round
Criticised the first tender round, in which RWE and LEAG were among the main beneficiaries.
Federal Ministry for Economic Affairs
Defended the projects as cost-effective.
RWE and LEAG were among the main beneficiaries, prompting criticism.
The ministry announced that it would issue a regulation clarifying the rules for coal-to-gas conversions.
The ministry plans to apply the clarified rules to the new tender for subsidised power plants.
- Minimum investment
- €431,000 per megawatt of eligible capacity
- Coal plant closure cutoff
- 22 July 2026, or by 1 January 2030 under the coal phase-out law
- Eligible spending
- Investment in new plants or expansions; not mere modernisation
- First tender beneficiaries
- RWE and LEAG
- Effect on existing awards
- The regulation will not affect awards already made