Germany Bets Big on Natural Gas to Keep the Lights On

16 gigawatts GW of derated capacity in Germany's first capacity auction, with more than half going to developments at existing coal sites. The results show how the search for dependable backup power is giving established generators an advantage, while batteries missed out entirely. Derated capacity is adjusted to reflect each project's expected contribution to security of supply.

As coal generation is being phased out and renewable capacity expands, Germany needs reliable backup power during prolonged periods of low wind and solar output, known as Dunkelflaute. Capacity payments reward operators for keeping that supply available. Existing power sites offer an advantage LEAG and RWE secured more than 99% of the awarded capacity. LEAG's success at its existing lignite sites highlights the potential value of reusing grid connections and other infrastructure.