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Already five gas-fired power plants are candidates for the Federal Subsidy Mechanism

Already five gas-fired power plants are candidates for the Federal Subsidy Mechanism

Because of the bid by four energy companies to build five gas-fired power plants, there is more supply than demand and support.

The federal government’s CRM support mechanism aims to persuade companies to invest in electrical capacity to deal with the shutdown of nuclear power plants. In fact, this is mainly about supporting the construction of new gas-fired power plants. The auction in which companies bid – under a sealed envelope – determines who will receive the money. Until Thursday, interested companies can submit a bid with grid operator Elia, which determines who qualifies under the oversight of federal energy regulator Creg.

Earlier it was announced that energy companies Tessenderlo, Luminus and Eneco have applied to build gas-fired power plants in Tessenderlo, Seraing and Manage. It now appears that Engie Electrabel is also applying, specifically for gas-fired power plants in Vilford and Les Auers.

The participation of the Vilford Project is particularly noteworthy. The province of Flemish Brabant had previously refused an environmental permit for this purpose, but Inge has appealed. In other words, it looks like Angie is betting that she will eventually get a pass. After all, a possible assignment without the correct permit means a serious financial loss. The fine can be up to 5 million euros.

The relatively high interest is also good news for Federal Energy Minister Tinne Van der Straeten (Groen). With the auction for the support mechanism, I began looking for 2.3 gigawatts of new capacity. The four primary candidates can provide 4 gigawatts together. So the supply is greater than the demand. Van der Straiten relied on this. Because of the great competition, energy companies have to position themselves more aggressively in order to gain support. In this way, the federal government’s funding costs for the energy transition may be reduced.

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At the end of October, Ilya will announce who will receive support and how much government they will receive in their account.