Germany Adopts New Capacity Framework For 11 GW Of Dispatchable Electricity Capacity

Background:

On 10 July 2026, the German Parliament adopted the Electricity Supply Security and Capacity Act (Strom-Versorgungssicherheits- und Kapazitätsgesetz) (“StromVKG”). Publication in the Federal Law Gazette and approval by the European Commission under EU State aid rules remain outstanding.

The legislation follows several years of debate over how Germany should maintain security of supply as coal-fired and nuclear generation leave the market and the share of intermittent renewable electricity continues to increase.

Germany has traditionally relied on an energy-only market, in which power plants are primarily remunerated for the electricity they sell. The StromVKG introduces an additional payment for maintaining secured capacity that can be made available during periods of low renewable generation or electricity scarcity.