Tue, November 15, 2022
FRANKFURT, Nov 15 (Reuters) -
Germany is moving too slowly to achieve the 30 gigawatts (GW) of gas turbine capacity by 2030 needed to stabilise its electricity distribution networks, plant maker General Electric (GE) said on Tuesday, drawing on commissioned research.
Gas turbines can provide quick boosts to supply but ancillary services to grids are required to iron out supply fluctuations in coming years, Martin O'Neill, vice president for strategy at GE Gas Power, told a webcast news conference.
Only 4 GW are in the current planning pipeline while the time frame needed to plan, permission and construct the infrastructure is five years, he said, referring to a report by Frontier Economics.
The figures are based on public and private research sources.
"We have significant challenges to resolve but appear to be stalled," O'Neill said. "Investors need to know how they can recover their investments in time."
Starved of Russian energy exports, Germany is plugging short-term gaps by providing more coal and nuclear power than planned under its long-term renewable energy rollout aimed at meeting climate targets and eventually securing independence from imports.
GE and Frontier said this pre-occupation, along with attempts to cap sky-high prices for consumers and siphon off excess profits in the utility sector, were distracting policymakers.
They need to provide clarity on funding for the likes of new grid batteries, pumped storage plants and other measures.
O'Neill also emphasised the longevity of gas turbines.
They are a conduit for natural gas but could in future be repurposed for low-carbon and zero-carbon fuels, he said.
Berlin has said its decarbonisation strategy remains intact despite the uncertain economic and geopolitical backdrop. (Reporting by Vera Eckert Editing by David Goodman)
Gas turbines can provide quick boosts to supply but ancillary services to grids are required to iron out supply fluctuations in coming years, Martin O'Neill, vice president for strategy at GE Gas Power, told a webcast news conference.
Only 4 GW are in the current planning pipeline while the time frame needed to plan, permission and construct the infrastructure is five years, he said, referring to a report by Frontier Economics.
The figures are based on public and private research sources.
"We have significant challenges to resolve but appear to be stalled," O'Neill said. "Investors need to know how they can recover their investments in time."
Starved of Russian energy exports, Germany is plugging short-term gaps by providing more coal and nuclear power than planned under its long-term renewable energy rollout aimed at meeting climate targets and eventually securing independence from imports.
GE and Frontier said this pre-occupation, along with attempts to cap sky-high prices for consumers and siphon off excess profits in the utility sector, were distracting policymakers.
They need to provide clarity on funding for the likes of new grid batteries, pumped storage plants and other measures.
O'Neill also emphasised the longevity of gas turbines.
They are a conduit for natural gas but could in future be repurposed for low-carbon and zero-carbon fuels, he said.
Berlin has said its decarbonisation strategy remains intact despite the uncertain economic and geopolitical backdrop. (Reporting by Vera Eckert Editing by David Goodman)
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