Germany's Green Hydrogen Gamble: A Race Against Time for Energy Transformation

Germany's economy minister, Robert Habeck, advances legislation for billions in gas power plant subsidies, but faces parliamentary hurdles. The plan aims to stabilize the grid with hydrogen-ready plants by 2042. As the government lacks a majority, concerns rise over meeting targets, notably the 2030 coal phase-out.

In a recent push for energy transformation, Germany's Economy Minister, Robert Habeck, introduced legislation aimed at granting billions of euros for constructing gas power plants. This initiative, however, faces significant hurdles, as parliamentary approval is uncertain.

Habeck's tenure as head of the economy and energy ministry has turned caretaker ahead of February's snap elections, following the coalition's collapse. On Friday, the legislation was forwarded to government departments for consultation, with an ambitious timeline set for passing it through parliament before elections, sources state.

The plan, intending to unlock €17 billion in subsidies by 2042, includes building new hydrogen-ready gas power plants and retrofitting old ones. Yet, misgivings about the lack of a formal draft have been voiced by opposition parties and energy experts, complicating this strategic energy plan reliant on green hydrogen.

(With inputs from agencies.)