Germany's New Energy Law Sparks Regional Clash Over Gas Power Plants
The federal government has passed the Electricity Supply Security Act (StromVKG) to secure Germany’s long-term electricity needs. The law focuses on building new gas-fired power plants, with two-thirds of capacity allocated to the 'grid-technical south' and the rest spread across the country. However, the decision has sparked criticism from some states over regional fairness. The new legislation aims to distribute gas-fired power plant capacity unevenly, favouring southern Germany. Under the plan, two-thirds of the new plants will be built in the 'grid-technical south', while the remaining third will go to other regions. This approach has drawn backlash from Saxony-Anhalt and Saxony, which argue the system unfairly benefits the south and North Rhine-Westphalia.
Energy Minister Prof. Dr. Armin Willingmann condemned the law for overlooking central Germany’s energy needs. He stressed the importance of hydrogen-ready gas and steam power plants in Schkopau to support local industries and protect jobs. The minister also called for clearer rules on converting existing plants to hydrogen in the future. Both states have pushed for two separate auctions to better control where new capacity is built. Their concerns will be formally raised at the upcoming Energy Ministers' Conference, scheduled for May 20–22, 2026. The new plants are designed to act as anchor customers for Germany’s emerging hydrogen economy, ensuring they can switch to hydrogen operations later.
The StromVKG law moves forward with a focus on southern Germany for new gas-fired power plants. Saxony-Anhalt and Saxony remain opposed, arguing the plan neglects central regions and lacks fair distribution. Their demands for clearer conversion criteria and separate auctions will be discussed at the next Energy Ministers' Conference.
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