Berlin:Germany's proposed expansion of gas-fired power plants is anticipated to lead to higher electricity bills and raise concerns about industrial competitiveness, according to Brandenburg Premier Dietmar Woidke.

According to Anadolu Agency – English, Woidke addressed the issue during Politico's Competitive Germany Summit in Berlin, as reported by the Welt newspaper. He explained that the construction of these plants would contribute to rising electricity prices.

The expansion plan includes compensation for operators to maintain capacity, even if the plants operate only a few hours each year. This compensation will be funded through a levy imposed on electricity customers starting in 2031.

Woidke also mentioned that temporary electricity subsidies do not provide sufficient certainty for investment in energy-intensive industries. Meanwhile, Germany's Federal Network Agency has awarded 11 contracts in its initial tender for long-term electricity capacity, with six contracts going to Leag.

Economy Minister Katherina Reiche expressed approval of the tender results, noting that 41 bids totaling nearly 12 gigawatts highlight strong investor interest. The new plants are intended to serve as a backup for when wind and solar power generation falls short, supporting Germany's plan to phase out coal by 2038.