Uniper CEO says could bid for 1-2 GW of power plant capacity
Reuters
Published Feb 28, 2024 14:32
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."
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.