RWE has been awarded contracts to construct three new hydrogen-compatible gas-fired power stations in North Rhine-Westphalia, following the outcomes of a recent auction organised by Germany’s Federal Network Agency under the Electricity Supply Security and Capacity Act.
The three projects together will provide a total capacity of approximately 2.1GW, with each station offering around 700 reduced megawatts (rMW).
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RWE’s three projects are planned in the towns of Voerde, Weisweiler, and Werne.
The Federal Network Agency selected these three projects as among those capable of providing capacity at the lowest cost over a 15-year period.
The contract awards form part of a wider German tender process valued at approximately €12bn ($13.4bn), aimed at constructing new power plants or converting existing facilities to operate on gas, reported Reuters.
The initial round of the tender encompassed 5.16GW of continuous power capacity, intended to reinforce the country’s energy security as coal-fired stations are decommissioned.
Under this arrangement, gas-fired plants will receive subsidies to ensure reliable availability during periods when renewable sources such as solar and wind cannot meet demand, with the costs recouped from consumers through an additional levy.
According to a GlobalData report, Germany is expected to reach a low-carbon hydrogen production capacity of 464.90ktpa by the end of 2026, ranking fifth globally behind the Netherlands (1,214.97ktpa), Canada (962.95ktpa), the US (954.87ktpa), and China (656.10ktpa).
RWE CEO Markus Krebber said: “We are delighted with this successful result. With our competitive bids we were able to win at this auction and can now build three new power stations that are urgently needed to secure supply in Germany.
“They will ensure that electricity continues to be supplied when the wind and the sun do not provide sufficient energy.”
The company has stated that preparation for the projects began before the auction results were confirmed.
RWE has engaged international consortia for regulatory planning, reserved manufacturing capacity for key components, and started approval procedures.
Construction on the first of these new power stations is expected to commence within weeks.
RWE has a history of developing and operating flexible electricity generation facilities and currently operates gas-fired power stations in Germany with a total capacity of around 4.2GW.
Last month, the company finalised the sale of its 33.33% stake in the Five Estuaries Offshore Wind Farm to EDF.
