Investment of €60 Billion Planned for German Power Plants

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Researched by Industrial Info Resources Europe (Galway, Ireland)--In its annual project announcement, the German Industry Association for Natural Gas, Electricity, District Heating, Water and Wastewater, BDEW (Berlin, Germany), outlined a portfolio of 84 projects valued at €60 billion ($79 billion).

At present, 69 of the 84 projects have received at least partial approval. Some of them are already under construction, with the remainder currently in the planning stages. All of the projects are slated to be operating by 2020. The projects are a mix of new-build and modernizations across 29 natural gas-fired stations, 17 coal-fired units, 10 hydropower pump stations and 23 offshore windfarms. The combined capacity of the projects is 42,056 megawatts (MW).

BDEW, which represents some 1,800 companies active in supplying power, gas, water and heat, traditionally issues the power station plans of its members around April. The plans this year reflect more than a year of debate on how to best replace Germany's nuclear power stations, which must be closed by 2022 in light of the nuclear disaster in Japan in March 2011. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.

BDEW's managing director Hildegard Mueller said that the plans' realisation mostly hinges on the German government clarifying the future power market design. If this is not done by 2015, the would-be investors, especially in thermal power stations, might get cold feet and withdraw.

While the investments by companies such as E.ON AG (PINK:EONGY) (Dusseldorf, Germany), RWE AG (PINK:RWEOY) (Essen, Germany) and Iberdrola SA (PINK:IBDRY) (Bilbao, Spain) are positive for Germany's future energy mix, "this shouldn't hide the fact that there are obstacles not just for renewable power but also coal and gas-to-power projects," Mueller said in the statement. Although authorities permitted several of the 29 gas generators in planning, companies haven't yet committed to the investments amid fears that the generators won't make money because of fewer operating hours. Renewables get priority access to the grid in Germany, wiping out earnings at gas stations, Mueller said.

Industrial Info is currently tracking more than 200 projects in power facilities throughout Germany. For additional information, see Industrial Info's Power Tracker.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.