German utility Uniper is planning to add 1–2GW of new gas-fired power capacity, contingent on its participation and success in a forthcoming government tender in Germany, Reuters has reported.

The German Government plans to issue tenders for an initial 10GW of new power capacity. These plants will subsequently have to be converted to run on pure hydrogen.

The news agency quoted Uniper CEO Michael Lewis as saying: “We could initially participate with plants of one to two GW if the appropriate conditions are met. If possible, we want to decide this year”.

The company’s involvement hinges on the specifics of capital and operational subsidies, which the government is expected to clarify.

Germany plans to redesign its electricity wholesale market in 2024, aiming for implementation by 2028.

The redesign will incorporate a capacity market mechanism to ensure the stability of power supply.

The first tenders for the new generation plants are scheduled for 2024, provided that legislative proposals are advanced promptly.

Although 2038 is the official phase-out date for coal-fired stations, the administration intends to bring this deadline forward.

The proposed 10GW of new capacity would be insufficient for a complete transition away from coal, and 20–25GW might be necessary.

Uniper recently agreed to sell a 430MW gas-fired combined-cycle power plant in Hungary to French utility Veolia.

The transaction will conclude in the second half of 2024, subject to regulatory approvals.

In August 2023, the company commissioned the 300MW Irsching 6 gas-fired power plant near Ingolstadt, southern Germany.

Electricity from this plant is reserved for emergencies to safeguard the supply system’s security.