16.01.2025 - “Security of supply is crucial for the economy. Modern gas-fired power plants are part of this to a certain extent. However, state-mandated and subsidised construction of gas-fired power plants is the wrong approach. Security of supply can be better ensured through market-based instruments.

By subsidising new gas-fired power plants, Germany commits itself to a specific and expensive technology for many years. This also burdens power consumers, who ultimately have to cover the costs through an additional levy. This is not about a few extra euros on the electricity bill but rather about several billion euros per year.

Instead of state-driven detailed control, the German government should rely on market-based incentives. More efficient and less costly than subsidies for new gas-fired power plants would be an obligation for electricity suppliers to secure power deliveries on the market. This way, security of supply can be ensured in a technology-neutral manner at the lowest possible costs.”