New conversation with Scholz
Lindner slows Habeck down when building a power plant
January 25, 2024, 12:06 a.m
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The federal government’s power plant strategy is hanging: Because of the budget situation, Finance Minister Lindner is blocking high investment commitments to the operators of future gas power plants. Economics Minister Habeck favors this. Now a new attempt with Scholz should bring about the breakthrough.
According to insiders, after the failed attempt at agreement, the government coalition is making a new attempt at a power plant strategy. The Economics and Finance Ministries wanted to meet again at short notice in the Chancellery this Thursday, said people familiar with the plans. This time, top representatives from the energy industry will also be attending to clarify open questions regarding the planned funding for power plant construction. Uniper and RWE, among others, will be represented. Both declined to comment, as did the economics department.
At its core, the strategy is intended to promote the construction of new gas power plants with billions of dollars to compensate for the growing but fluctuating feed-in of wind and solar power. The systems are to be gradually converted to climate-friendly hydrogen. On Tuesday, an attempt at agreement by Economics Minister Robert Habeck from the Greens, Finance Minister Christian Lindner from the FDP and Chancellor Olaf Scholz from the SPD failed. According to government and industry circles, Habeck and Scholz largely agreed, while Lindner had concerns.
Subsidies of 40 billion euros needed
Financing is also difficult given the strained budget situation. Tenders for the systems are planned. Whoever demands the lowest subsidies gets the contract. The cost estimates from the industry recently amounted to up to 40 billion euros by the mid-1930s. Whether Germany can shut down the last coal-fired power plant by 2030, as demanded by the Greens in particular, also depends on the implementation of the strategy.
Habeck wants to support companies with both the investment and operating costs of the systems. Those familiar with the discussions said that Lindner was particularly critical of the investment support proposed by Habeck. He is campaigning for a so-called capacity market. Power plant operators would receive money simply for being able to provide electricity in times of lack of renewable energy without it actually having to flow. Lindner also insists on being open to technology and does not want to commit itself solely to hydrogen-capable gas power plants.