Germany Bets Big on Natural Gas to Keep the Lights On

AI Summary

Germany’s first capacity auction awarded all 5.16 GW of derated capacity to gas-fired projects, with more than half allocated to developments at existing coal sites. The outcome highlights the role of gas as backup for intermittent renewables and the phaseout of coal, while battery projects received no capacity.

Gas-fired projects secured all 5.16 gigawatts (GW) of derated capacity in Germany's first capacity auction, with more than half going to developments at existing coal sites. The results show how the search for dependable backup power is giving established generators an advantage, while batteries missed out entirely. Derated capacity is adjusted to reflect each project's expected contribution to security of supply. As coal generation is being phased out and renewable capacity expands, Germany needs reliable backup power during prolonged periods…