Deutsche Umwelthilfe critiques first auction round of German power security law
The inaugural auction under the German Strom-VKG power security law resulted exclusively in contracts for fossil gas plants, drawing criticism for ignoring sustainable storage alternatives.
The first bidding round of Germany's Strom-VKG (Power Supply Security Act) has concluded, with fossil fuel giants RWE and LEAG securing all available contracts. According to environmental group Deutsche Umwelthilfe (DUH), the auction criteria effectively precluded battery storage and other sustainable technologies from competing, ensuring that only fossil gas power plants were selected.
Data indicates a significant consolidation of market power, as 10 of the 11 awarded projects were distributed between RWE and LEAG. Critics note that LEAG utilized the process to fund the conversion of existing lignite plants to natural gas, a move that the DUH argues contradicts the law’s intent to stimulate new, efficient capacity.
DUH federal managing director Sascha Müller-Kraenner stated that the government is essentially subsidizing fossil fuel corporations at the expense of electricity consumers. The organization is calling for a structural overhaul of future bidding rounds to ensure a fair, technology-neutral competitive environment.