1KOMMA5° files EU complaint over German gas subsidies: ‘Risks billions in investments’

Climate tech scaleup 1KOMMA5° has filed a complaint with the European Commission over Germany’s plans to build 20GW of new gas-fired power plants.

The company argues that Germany’s plan to use billions in EU state aid to subsidise the plants – which generate electricity by burning natural gas – violates EU competition laws.

CEO Philipp Schröder called the measures “unfounded” and “disproportionate.”

“The subsidies directly jeopardise billions of investments in business models around intelligent controls, energy management systems and innovative, dynamic tariffs,” he wrote in a LinkedIn post Tuesday.

Unfair advantage

1KOMMA5° asserts that so-called ‘virtual power plants’ – decentralised networks of small, flexible energy sources like batteries, solar panels, and electric cars – provide consumers with a competitive alternative to centralised gas.

But state aid for new gas could tip the balance in favour of fossil-fuelled energy, the company argues, while squeezing out decentralised energy providers.

“Virtual power plants must be at least treated equally [to gas] in any case,” wrote Schröder.

1KOMMA5° calls instead for a technology-neutral approach based on a “hedging obligation,” which would secure supply through market mechanisms rather than subsidies.

What now?

1KOMMA5°’s EU complaint will likely trigger a review of Germany’s gas subsidies to see if they comply with state aid rules.

The Commission could approve, reject, or impose conditions, potentially delaying the plan and affecting cleantech investments.

Schröder has called on other green energy companies to file their own complaints to the EU.