Skip to content
You can now search across every topic, entity and event.What's new
Iran Conflict 2026
12AUG

Capacity law faces 24 June hearing

4 min read
14:52UTC

Germany's StromVKG capacity-market law goes to a public expert hearing on 24 June, with a Greens motion and Federal Cartel Office concerns in play before the first 4.5 GW auction targeted for 1 September.

ConflictDeveloping
Key takeaway

The 24 June hearing decides whether the 1 September capacity auction date holds.

The StromVKG, Germany's electricity capacity-market law, goes to a public expert Anhoerung (hearing) at the Paul-Loebe-Haus on 24 June 1. A capacity market pays plants to be available rather than for the power they sell, the instrument Germany is using to keep dispatchable gas capacity on the system as renewables grow.

The Greens motion 21/6369 demands technology-neutral auction criteria and clarity on how the levy is financed , carrying forward the hydrogen-conversion push the group raised in committee on 17 June. The Federal Cartel Office, Germany's competition authority, has flagged market-concentration concerns in the design. The bill reached this stage after the Bundestag's first reading and committee referral advanced it under accelerated procedure .

The first 4.5 GW long-duration auction is targeted for 1 September, a second 4.5 GW for 8 December, with a ten-hour continuous-output rule that excludes batteries from the opening tranche. That rule is the design choice with the sharpest market consequence: it hands the first auctions to long-duration thermal plant and shuts storage out of the initial capacity payments.

The hearing is where the 1 September date either holds or slips. The timing connects directly to the spark: CCGTs that have just turned profitable to run are the same plants the capacity auctions are meant to underwrite, so any delay leaves their forward economics resting on the spread alone.

Deep Analysis

In plain English

Germany is creating a capacity market: a system to pay gas power stations to stay available as a backup for when wind and solar are not generating enough electricity. The law establishing it, the StromVKG, passed its first parliamentary reading in June 2026. On 24 June, the German parliament held a public hearing on the StromVKG design. The Greens party wants the rules to be technology-neutral, asking that batteries and other clean technologies also be eligible for capacity payments, rather than gas stations alone. Second, Germany's competition watchdog, the Federal Cartel Office, is worried that the programme would mostly pay money to a small number of big energy companies that already own most of the gas power stations. The first auction is planned for 1 September 2026, with a second in December. Whether those dates hold depends on what comes out of the hearing on 24 June.

What could happen next?
  • Risk

    A successful legal challenge to the ten-hour battery exclusion rule, via either a Cartel Office formal proceeding or an EU Commission state-aid opening, would delay the September auction and leave Germany without the capacity mechanism framework through the current heating season.

    Short term · Suggested
  • Consequence

    If the September auction proceeds on schedule and awards contracts to existing CCGT plant, the gas power stations currently generating at +EUR 30 spark spread receive both a market margin and a capacity payment; double compensation that the Cartel Office's concentration concern addresses.

    Medium term · Assessed
  • Precedent

    Germany's battery exclusion replicates the UK T-4 2014 design error; the EU Commission is likely to require technology-neutral admission within two to three years as occurred in the UK.

    Long term · Assessed
First Reported In

Update #20 · Spark spread now feeds the winter deficit

Deutscher Bundestag· 22 Jun 2026
Read original
Different Perspectives
Anwar Gargash, UAE presidential diplomatic adviser
Anwar Gargash, UAE presidential diplomatic adviser
Gargash warned the region cannot stay trapped between "neither war nor peace", naming the stalemate itself as unsustainable for a Gulf state hosting US forces and absorbing the shipping-risk cost without being party to either the strike decisions or the corridor talks.
Shipping and insurance underwriters
Shipping and insurance underwriters
War-risk premiums are still set against an active blockade and a fatal Bab el-Mandeb attack with an unresolved vessel identity. A disabling strike and a diplomatic "advanced" claim pulling in opposite directions gives underwriters no single signal to reprice cover against.
Pakistan and Qatar (Oman corridor mediators)
Pakistan and Qatar (Oman corridor mediators)
Pakistan's defence minister said matters are "shaping up in favor of peace" on Hormuz and a Qatari spokesperson called the Iran-Oman reopening talks advanced. Both are publicly ahead of Tehran's own security council, which has just disowned the deal's significance.
United States Central Command / President Trump
United States Central Command / President Trump
CENTCOM confirmed a helicopter strike disabled a container ship that tried to evade the blockade, and Trump said the US "totally controls" the Strait of Hormuz. Washington is treating evasion of the blockade as grounds for disabling fire rather than the redirection tactic CENTCOM used through July.
Mohsen Rezaei, Iran's Supreme National Security Council
Mohsen Rezaei, Iran's Supreme National Security Council
Rezaei told China's ambassador Hormuz reopens only when the US ends the war and unblocks Iran's funds, and that the Oman transit deal "will have no impact" on that decision. He is drawing a hard line between the technical corridor track and the political settlement his council controls.
Yemen's internationally recognised government and affected communities
Yemen's internationally recognised government and affected communities
SABA reported at least 17 soldiers killed at Saudi-backed camps in eastern Yemen as tanker use of Bab el-Mandeb fell. The fighting adds civilian and supply risks to a route ships use when Hormuz is unsafe.