2026 Decision on Gigawatt-Scale Power Plant Buybacks - Trading Business Shuts Down
From Cologne
Building new gas-fired power plants according to RWE's plans.
European energy giant RWE intends to construct approximately 3 gigawatts (GW) of flexible power plants in Germany, primarily at pre-existing sites, as early as 2026. This ambitious project is the culmination of years of preparation by the Essen-based company. The hurdles to construction go beyond the tender process and require the adoption of a suitable market design.
"We're cooking with gas, mate!" declared the Chief Financial Officer, Michael Müller, during the interim report presentation.
As the German government accelerates its plans to tender up to 20GW of new gas-fired power plants, RWE aims to secure a substantial portion—at least 3GW—of this capacity, providing a significant boost to the nation's energy landscape[1][3][4]. However, such ambitions require favorable market designs and framework conditions[2].
The new federal government is urging a rapid expansion and tendering of gas-fired power plants to ensure a stable grid, particularly during periods of low renewable generation (wind and solar)[2]. Indeed, Federal Minister for Economic Affairs Katharina Reiche has highlighted the critical role of flexible gas-fired power plants in preserving supply security and advocated for lengthy gas supply contracts[2].
Although the priority is clear, some experts have called for a "reality check" to balance the energy transition while accounting for grid expansion and backup capacity costs and risks[2]. This strategy incorporates renewables, battery storage, and other flexible generation options to maintain power grid stability and reliability[4].
RWE anticipates promptly initiating construction once tenders are finalized and conditions are favorable. The company has been quietly advancing its planning and approval procedures since summer 2023[1]. One example is an agreement reached with partners for a hydrogen-compatible gas-fired power plant at the Weisweiler site[1].
The commissioning of RWE's ongoing projects (renewables and storage) is slated for the end of 2026. Consequently, the timeline for the gas plants is expected to coincide with this strategic mid-decade commissioning wave[1][4]. To further stabilize the grid, RWE plans to integrate large-scale battery storage systems, capable of delivering power in milliseconds[1][4]. These systems will provide rapid balancing power, complementing the new gas-fired power plants.
To sum up, RWE has been gearing up to construct at least 3GW of flexible gas-fired power plants in Germany since 2023, with production taking place primarily at pre-existing sites. This plan aligns with the German government's vision to tender up to 20GW of new gas plants, positioning RWE to contribute substantially to the national grid’s stability[1][3][4]. Construction is poised to begin alongside the commissioning of significant battery storage deployments, enhancing the flexibility and resilience of the power grid.[1][4]
"The European energy giant RWE, with its ambitious 3GW flexible power plant construction project in Germany, is seeking to make a significant contribution to the nation's energy landscape, as it intends to secure a substantial portion of the upcoming 20GW of gas-fired power plants tendered by the German government."
"In the pursuit of grid stability and supply security, RWE's portfolio includes plans for large-scale battery storage systems, capable of delivering power in milliseconds, to complement its upcoming gas-fired power plants and provide rapid balancing power."
