Technology
CCGT
Combined-cycle gas turbine: gas-fired power plant technology that recovers waste heat for additional generation; marginal cost = fuel plus carbon.
Last refreshed: 22 May 2026 · Appears in 1 active topic
Key Question
At current gas and carbon prices, what does it cost to generate a megawatt-hour from a gas turbine?
Timeline for CCGT
#1122 May
Represented the gas-fired generation technology whose marginal cost drove German plants off-merit
European Energy Markets: Germany cannot inject at this price#1121 May
Mentioned in: FR-DE day-ahead spread doubles to EUR 46.58
European Energy Markets#112 Apr
Mentioned in: Stegra finishes 740 MW Boden electrolyser
European Energy MarketsCommon Questions
- How much does it cost to generate electricity from a gas power station in Europe now?
- At TTF EUR 50/MWh and EUA EUR 65/t, a combined-cycle gas turbine's short-run marginal cost is approximately EUR 62-68/MWh in Germany, combining gas fuel and carbon allowance costs.Source: european-energy-markets briefing
- What is a combined-cycle gas turbine and how is it different from a regular gas power station?
- A CCGT runs a gas turbine and a secondary steam turbine in series, recovering exhaust heat to achieve 55-62% thermal efficiency — significantly higher than the 35-40% of a simple-cycle open-turbine plant.Source: IEA / energy encyclopaedia
- Why does Germany need 12 GW of new gas power plants if it is expanding renewables?
- New capacity is hydrogen-ready CCGT, designed to balance intermittent wind and solar. Germany confirmed a 12 GW hydrogen-ready gas tender with the EU Commission, with the first 8 GW auction set for September 2026.Source: european-energy-markets briefing
- How does the EU carbon price affect CCGT electricity generation costs?
- At EUA EUR 65/t and a CCGT emission factor of 0.52 t CO2/MWh, the carbon component alone adds approximately EUR 34/MWh to generation cost, roughly half the total short-run marginal cost.Source: EU ETS / EPEX SPOT data
Background
CCGTs are the marginal price-setter in Germany's power stack on high-demand days. At TTF EUR 50/MWh and EUA EUR 65/t, short-run marginal costs sit at EUR 62-68/MWh — the threshold German chemical producers cite for curtailment decisions. Germany's planned 12 GW hydrogen-ready gas capacity will initially operate as conventional CCGT.
How the World Sees Them
German heavy industry
CCGT-set power at EUR 62-68/MWh is cited as the continuous-process cost floor that makes European production economically unviable against Asian competitors with lower energy costs.
Green hydrogen developers
CCGT-set power prices directly set the bar that electrolytic hydrogen must beat to be competitive as an industrial feedstock and power-plant fuel.
EU energy transition planners
CCGT capacity is essential as a flexibility backstop for renewables but its gas dependence makes it a long-run liability; the 12 GW German hydrogen-ready tender aims to build flexibility that can decarbonise.