Economy Minister backs League's support for gas-fired power plants
In the midst of Germany's energy transition, power producer LEAG (Lausitz Energie Bergbau AG) based in Brandenburg's Lusatia region, stands to benefit from a strategic position for the fast construction of new gas power plants.
The region of Lusatia, a key energy hub transitioning from coal to gas and renewables, provides LEAG with an advantageous starting point. As a large regional energy company, LEAG is actively involved in this transition, leveraging existing infrastructure and industry experience.
Germany's accelerated energy infrastructure-related legislation has also played a significant role in LEAG's potential success. Recent legislative frameworks prioritize and expedite gas power projects to ensure energy security during the coal phase-out planned by 2038. This legislative support is crucial for LEAG's gas power ambitions.
Lusatia's historical lignite coal mining and power generation have left the region with connections to the transmission grid and industrial infrastructure. This existing infrastructure reduces lead time compared to greenfield sites, making it easier for new gas power plants to be deployed.
Germany faces challenges in expanding its national grid, with delays and long timelines (years to decades) for large grid expansion projects. However, gas power plants like those potentially built by LEAG can be deployed faster as bridging capacity to stabilize the grid during the renewable ramp-up.
The recent approval of a bill to fast-track Carbon Capture and Storage (CCS) infrastructure further supports LEAG’s gas power ambitions. Gas plants can use CCS to reduce emissions, making them more environmentally friendly.
In summary, LEAG's presence in Lusatia, coupled with regulatory support and existing infrastructure, gives it a relative advantage in building new gas-fired power plants faster than many competitors amid Germany’s energy transition challenges. However, detailed project-specific data would be needed for exact timelines and comparisons.
Brandenburg's Economics Minister, Daniel Keller (SPD), also sees an advantage for power producer LEAG in the construction of new gas power plants in Germany, although no mention has been made of his belief that a power plant would likely be built in Brandenburg's Lusatia first.
The strategic position in the energy-transitioning Lusatia region, being a key energy hub, provides LEAG with an advantageous starting point for the fast construction of new gas power plants, given the region's existing infrastructure and the legislative support that prioritizes and expedites gas power projects. As a large regional energy company, LEAG leverages its industry experience to actively participate in the energy transition.
