Germany to tighten eligibility rules for coal-to-gas projects in power auctions
XLU•Germany will limit which coal-to-gas conversions qualify as new-build projects in power capacity auctions to units already required to close before 2030. Bidders must invest at least €431,000 per eligible megawatt; the second auction offers 3,840 megawatts, with bids due December 29.
1. Tighter project eligibility
Germany will introduce a regulation clarifying when converting an existing coal-fired power plant to gas qualifies as a new-build project and counts toward minimum investment requirements. To qualify, a coal-fired unit must already be required to shut permanently before 2030, and bidders must invest at least €431,000 ($480,608) per megawatt of eligible capacity.
2. Second auction launched
The ministry said the clarification is intended to prevent operators from claiming investment credit for converting coal plants that would otherwise continue operating beyond 2030. RWE and LEAG secured most of the successful bids in the first auction round; LEAG plans to build new gas-fired plants at existing lignite power plant sites, reusing infrastructure to reduce costs. Germany's energy regulator launched the second auction on Tuesday, offering 3,840 megawatts of eligible capacity, with bids due by December 29.
