The debate about new Gas power plants tightens as a safety net for the energy transition. While Minister Katharina Reiche originally called for around 20 GW of new capacity, the federal government and the EU agreed on a significantly smaller framework at the beginning of 2026: Accordingly, 10 GW of gas power plants and 2 GW of technology-open capacities will now be tendered to ensure supply in the event of Dark doldrums to secure.
But what are the financial consequences of this expansion? A current short study The Forum for Ecological-Social Market Economy (FÖS), commissioned by Green Planet Energy, shows: Electricity from natural gas is far more expensive than often claimed. If, in addition to the generation costs, one also includes Societal follow-on costs With one, the supposed backup becomes a costly burden.
Gas power plants as a building block for security of supply?
With the growing share of wind and solar power, the structure of the electricity system is fundamentally changing. Since renewable energies generate power depending on the weather, additional flexible capacities are required that can step in at short notice. This is precisely the role that the BMWE believes additional Controllable gas power plants take over. After Large battery storage systems Along with hydroelectric power, gas-fired power plants are considered relatively flexible compared to other fossil fuel power plants. They can be ramped up and down relatively quickly and are therefore generally well-suited to filling short-term gaps in electricity supply. However, they are increasingly the focus of economic and climate policy discussions—particularly with regard to their actual costs.
Cost of generating electricity from gas power plants
Considering only the classic levelized costs of electricity, the costs for electricity from new gas power plants are currently in the range of approximately, according to various calculations 19 to 23 cents per kilowatt-hour.
These costs consist of several components:
- Investment costs for construction and financing of the power plant
- Operation and Maintenance
- Natural gas fuel costs
- Costs from the European Emissions Trading System (CO2 certificates)
A essential and unforeseeable cost factor is the fuel itself. Gas prices are subject to strong market fluctuations and can significantly affect the profitability of a power plant. In addition, there is CO₂ price, which is expected to continue to rise in the future within the European Emissions Trading System, thus causing additional costs for fossil fuel power plants.
Social costs of gas power plants
The mentioned FÖS study expands on this classic approach with so-called Societal costs. The authors understand this to mean costs that arise from the use of fossil fuels but are not fully included in the electricity price.
These costs include, among others:
- Climate damage from CO₂ emissions
- Methane emissions along the gas production and transport chain
- State funding for gas infrastructure
- economic risks posed by energy price crises
According to the study, when these factors are taken into account, the cost of electricity from gas-fired power plants rises significantly. Depending on the assumptions, the total cost could amount to 35 to 67 cents per kilowatt-hour amount. Some of these costs arise from climate damage, which is only partially reflected in today's electricity prices. For example, a single gas power plant can emit several million tons of CO₂ over its lifetime. In the study's modeling, a reference power plant with an output of 500 megawatts causes, depending on its utilization up to 8.4 million tons of CO₂. Depending on the valuation approach used, this results in climate damage in the billions.
Key Figures from the Study on Electricity from Gas Power Plants (Example)
| Key figure | Value |
| Example power plant | 500 MW Gas Power Plant |
| Typical electricity generation costs | approx. 19–23 ct/kWh |
| Percentage of fuel costs | approx. 6–7 ct/kWh |
| Total costs including external effects | 35–67 ct/kWh |
| CO₂ emissions over lifetime | up to 8.4 million t CO₂ |
| Possible climate damage costs | up to €7 billion |
Comparison with Renewable Energy & Alternative Backup Options
For comparison: The generation costs of new wind and photovoltaic plants are often under 10 cents per kilowatt-hour. However, these technologies served a different role in the power system, according to the study's authors. While they generated cost-effective electricity, additional flexible capacities were necessary to balance supply and demand at all times. In addition to gas power plants, various alternatives are being discussed for this purpose, such as:
- Battery storage
- Bioenergy plants
- Hydrogen power plants
- Load management and flexible electricity demand
Which combination of these technologies will represent the most cost-effective solution for security of supply in the long term is the subject of intensive energy policy and economic analyses.
Cost comparison of different technologies
Since the mid-2010s, the costs of renewables have been lower than those of fossil fuels. Wind and PV_Levelized_Cost_of_Electricity have been sinking slightly since then. The values in this table are derived from, among other sources, the current FÖS study and from the Fraunhofer ISE.
| Technology | Power generation costs |
| Photovoltaics (new systems) | Less than 10 cents per kilowatt-hour |
| Onshore wind energy | Less than 10 cents per kilowatt-hour |
| Gas power plant (with CO₂ price) | 19–23 ct/kWh |
| Gas power plant incl. external costs | 35–67 ct/kWh |
| Hydrogen Power Plants (Forecast) | approx. 23–60 ct/kWh |
Classification: A complex cost comparison
The results of the study show one thing above all: The evaluation of power plant technologies depends heavily on, What costs to consider. While classical electricity generation costs only consider the direct costs of electricity production, more comprehensive analyses also attempt to include external effects such as climate damage or systemic risks. Both perspectives play a role in energy policy decisions. Therefore, it will be crucial for the future design of the electricity system to reconcile security of supply, climate goals, and economic efficiency.