Gas-fired power stations and the hydrogen market ramp-up

in September, the topic of the month for the energy industry was the monitoring report for the Federal Ministry for Economic Affairs and Energy (BWME). I moderated several panels at the Handelsblatt Annual Gas Conference in Berlin in September, as well as a panel at the Beyondgas hydrogen conference in Oldenburg. The monitoring report was a key point of discussion at each event. It is also the Topic of the Month in this issue. Here, I will focus on areas relevant to the gas industry, namely gas-fired power plants and hydrogen. With regard to gas-fired power plants, I will also refer to the Federal Network Agency's (BNetzA) security of supply report, which was published at the beginning of September.

Statements from various discussion panels at the Handelsblatt conference appear throughout this edition as they are relevant to many of the topics covered. I found the conference particularly engaging because it featured intense discussions and debates about the role and future of natural gas in the context of decarbonisation, security of supply, and competitiveness. Many of my conversations with stakeholders from the energy sector have led me to conclude that gas will remain part of the energy system for much longer than would be desirable from a purely climate policy perspective. Transformation processes are proving to be more costly, technically complex and time-consuming than desired or initially anticipated. Furthermore, the BMWE's potential willingness to address energy issues is currently unclear. I have summarised the market rumours surrounding the ministry and the minister in the Market Rumours section. There is considerable hope that following the release of the monitoring report, real progress will now be made within the ministry.

A new or expanded gas partnership between Russia and China has likely attracted more international attention than it has in Germany. This topic has both geopolitical and industry-related dimensions. I have attempted to outline these in this edition. According to the analyses I have read and the discussions I have had, Power of Siberia 2 – a central component of this gas partnership – remains a long way from completion.

Dr. Heiko Lohmann
Freelancer

E-Mail +49 30 8824005

Topic of the month: Gas-fired power stations and the hydrogen market ramp-up

Plenty to read in September

The debate about the necessary and unnecessary gas-fired power plant capacity as a backup for the power system gained new analytical food in September:

• At the beginning of September, BNetzA published its ‘Report on the status and development of security of supply in the area of electricity supply’.

• On 15 September, the Federal Ministry for Economic Affairs and Energy (BMWE) published the monitoring report ‘Energy transition. Efficient. Action’, which had been agreed in the coalition agreement (energate Gasmarkt 07/25). The report aims to show how the transformation of the energy system can be implemented more efficiently. It represents the starting point for the energy policy of the newly formed federal government. The report was presented at a press conference by Federal Minister for Economic Affairs Katherina Reiche, Alexander Kox (BET) and Philipp Kienscherf (Ewi). BET, a consultancy, and the Energiewirtschaftliches Institut an der Universität Köln (Ewi), a think tank, made the study.