Germany to tighten eligibility rules for coal-to-gas projects in power auctions
BERLIN, Nov 10 (Reuters) - Germany will tighten the eligibility rules governing conversion projects for existing coal-fired power plants to switch to gas in power capacity auctions, the economy ministry said on Tuesday.
The ministry said it will introduce a regulation clarifying when a fuel switch at a coal-fired plant qualifies as a "new build" project and therefore counts towards minimum investment requirements.
To ensure that auctions deliver genuinely additional capacity, coal-to-gas conversion projects would only qualify as new build investments if they involve coal-fired units that are already required to shut permanently before 2030.
Bidders must invest at least €431,000 ($480,608) per megawatt of eligible capacity.
The clarification is intended to prevent operators from claiming investment credit for converting coal plants that would otherwise continue operating beyond that year.
It comes after the first auction round, in which utility groups RWE and LEAG secured most of the successful bids. LEAG plans to build new gas-fired plants at existing lignite power plant sites, reusing infrastructure to reduce costs.
Germany's energy regulator on Tuesday also formally launched the second auction for long-duration capacity under the scheme. The auction will offer 3,840 megawatts of eligible capacity, with bids due by December 29.
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