Uniper to return 1.4 GW German gas units at Irsching in October

London — Southern Germany's biggest gas-fired power plant at Irsching is to return to the market in October, one year earlier than planned, operator Uniper said Wednesday.

The 846 MW Irsching 5 and 561 MW Irsching 4 combined cycle gas units were mothballed in April 2016 due to high gas and low power prices.

Both units were contracted by grid operator Tennet under Germany's grid reserve to help stabilize the grid until end-September 2021.

"We have always said that we would constantly monitor whether economic market developments allow a return of the Irsching power plants. As things stand, it may be possible to obtain slightly improved margins in the foreseeable future through market operation of these plants," Uniper COO David Bryson said.

Bryson called on the government to follow the recommendations of the coal commission and, after finalizing conditions for a coal phase-out, "enshrine the provision of a continuous power supply in German law."

German utilities have lobbied for a formal, long-term capacity remuneration mechanism like the UK's to support new build investment, but the government has resisted these calls.

"The system of drawing on very different reserves is not forward-looking, as it focuses largely on older existing plants," he said.

Uniper is building a 300 MW open gas turbine, or Irsching 6, to help stabilize the grid from October 2022.

It is about to commission the 1.1 GW Datteln 4 on Saturday, Germany's last coal plant, which has been delayed at various stages since 2007.

Irsching 4 and 5, commissioned less than ten years ago with efficiency ratings around 60% in terms of lower heating value, or LHV, are among the most modern gas plants in Europe.

Last September the owners renewed a temporary closure application until Q4 2021 saying there were "still no suitable framework conditions for highly efficient gas-fired power plants to continue operating economically beyond autumn 2020."

The owners including Mainova, ENTEGA and N-ERGIE have now withdrawn the notification of closure, Uniper said.

Gas-fired margins for the year-ahead, which have been negative for most of the past decade have improved sharply, since 2018 with clean spark spread for a 50% efficient gas plant now above Eur5/MWh. This is on par with the year-ahead clean dark spread for a 45% efficient coal unit in Germany, S&P Global Platts data showed.