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Siemens recently received an approval to build a gas-fired power station in southern Germany. This would be the first gas plant order in the country in four years for Siemens if approved by the European Union. The project could be worth up to half a billion euros for Siemens ($565 million) for a 600 MW plant.
Germany's cartel office has approved the plant in Leipheim, north east of Ulm in Bavaria, which would be built by Siemens and Stadtwerke Ulm, a utility in Baden Wuerttemberg. The gas-fired plant is designated as a reserve power plant for Bavaria where the neighbouring nuclear power station Gundremmingen will be switched off in two stages, 2017 for block B and 2021 for Gundremmingen C. Reserve power plants can earn more money, making a gas-fired option more commercially viable.
Bavaria currently gets a third of its power from renewable sources, including solar, hydroelectric, biomass and geothermal. But the state still needs some conventional energy capacity to guard against supply swings in the region.