The German energy ministry has prepared draft legislation that would allow coal and oil-fired power plants in the grid reserve to participate temporarily in the open market, sources in government circles have told Argus.
The return to the open market of 7.45GW of coal-fired and 805MW of oil-fired reserve capacity would only be possible in the event of a gas shortage, namely if the level is raised to "alarm" or "emergency" status, according to the draft document — dated 16 October — seen by Argus.
Any return would be temporary, with the document stating that plants' participation in the open market would end by 31 March 2028, although this is not yet confirmed.
Participation in the open market would be voluntary, but should operators choose not to, they would be required to keep their plants ready for "continuous operation" and to maintain "appropriate fuel stocks". This would correspond to stocks to run a coal-fired plant at maximum net capacity for 30 days and for 10 days for an oil-fired plant, the draft states.
Costs would be reimbursed and passed on through grid fees.
This measure would be introduced through a change in the energy industry act, while the alert level under the gas emergency plan would be changed through an ordinance.
The measure is intended to secure energy supply by reducing power-sector gas burn.
Germany has around 30GW of gas-fired capacity in the open market and just over 23GW of combined coal and lignite-fired capacity in the open market. Generating margins for 40pc-efficient coal-fired plants and 36pc-efficient lignite-fired plants were last assessed at significant advantages to those for 55pc-efficient gas-fired plants for all four quarters of next year.
