Germany to save €1.5 billion by phasing out power payments

• a month ago (2025-04-24)
• David Flin

Distribution 139 Europe 1121

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Germany’s Bundesnetzagentur , the regulatory body overseeing the country’s energy grid, has proposed phasing out payments currently made to smaller conventional power generation units over the period 2026-2028.

These payments are intended to incentivise these units to maintain operational readiness, ensuring they can quickly ramp up power generation to stabilise the grid when there are supply fluctuations or disruptions. The regulator estimates that removing these payments will save power customers approximately €1.5 billion over the three-year implementation period. The measure will be gradually implemented to avoid any sudden shocks to the market and to provide time for affected power generators to adjust their business models.