By Christoph Steitz, Vera Eckert and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) - German utility Uniper is considering the development of between 1 and 2 gigawatts (GW) of new gas-fired power capacity if it participates and gets the go-ahead in a Berlin government tender, its chief executive said on Wednesday.
The Berlin government plans tenders for initially 10 gigawatts (GW) of new power station capacity, which must later be switched to running on clean hydrogen.
"We could initially participate with plants of one to two GW if the appropriate conditions are met," CEO Michael Lewis told Reuters after a press conference to present 2023 earnings.
"If possible, we want to decide this year," Lewis said.
Uniper's decision would depend on the framework conditions, Lewis said, alluding to the need for the government to spell out details of capital and operating subsidies.
Berlin also wants to present a new design for the electricity wholesale market by the middle of 2024, to be operational by 2028 and including a so-called capacity market mechanism that takes account of the need to reward stable load provision.
First tenders for the new generation plants will take place this year if the government gets legislative proposals on their way in time.
The planned plants will be crucial for Berlin to convince producers of brown coal, the most polluting kind, to phase out coal-fired stations earlier than the official date of 2038.
Earlier, Lewis told a press conference that 10 GW of new capacity, in his view, was too little to enable an exit from coal burning.
"We expect 20-25 GW should be necessary to replace all the old power stations," he said. "We need another stage."