Germany's first backup power plant auction: 5.16 GW, all gas, ten contracts to LEAG and RWE

Germany's Federal Network Agency (Bundesnetzagentur) published on 3 November the results of the first auction for long-term capacity held under the new electricity supply security law (Strom-VKG). Of 41 bids totalling about 11,958 rMW, 11 won, with about 5,160 rMW, even though the auctioned volume was 4,500 rMW: the bid that crossed the threshold was also accepted in full.

The figures. The volume-weighted average award value is 155,296 euros per rMW per year, according to the regulator, well below the maximum price of 244,000 euros. Capacity is counted in "reduced" megawatts, adjusted for how reliably each technology can deliver over long periods. North Rhine-Westphalia receives about 2,118 rMW, Brandenburg 1,819 rMW, Saxony 910 rMW, Bavaria 269 rMW and Baden-Württemberg 45 rMW. Seven bids were excluded for missing information or proofs.

Who won. According to Clean Energy Wire, all projects are gas-fired plants and no battery got through, partly because bidders had to deliver 80% of capacity for at least ten hours. RWE won three projects in the west of the country. LEAG announces seven gas-fired units with 3,680 MW (2,998 rMW): four of 560 MW each at Jänschwalde, two at Boxberg and one hydrogen-ready 320 MW unit at Leipheim in Bavaria, all in operation by the end of 2031 at the latest, with investments of 1.5–2 billion euros. The eleventh contract goes to a municipal utility.

Reactions. Bundesnetzagentur president Klaus Müller called the results "an important first step" and spoke of intense competition between technologies. Deutsche Umwelthilfe criticises LEAG for having the conversion of its old lignite plants subsidised, while Greenpeace puts the cost at 800 million euros a year for 15 years, paid from 2031 through a levy on the electricity price.

What comes next. The second round, also of 4,500 rMW, will be announced on 10 November, according to the regulator, with bids due by 29 December, Clean Energy Wire notes. Annual auctions are planned from 2032.

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