The German government has announced it will stop using coal to generate power by 2038. The move will have major ramifications for the energy industry in a country where coal generates nearly 40% of the power. Chancellor Angela Merkel said that as the country phases out its use of coal, it will need more natural gas and will seek to increase the country’s share of renewable energy to 65% by 2030 from 38% today.
Germany to exit coal power by 2038 The government-appointed commission finally came to a decision this morning: Germany will shut down all coal-fired power plants by 2038! Already until 2022, 12.5 GW of coal capacity will be shut down. The deal considers significant financial transfers for the coal-mining regions in Germany, to transition these regional economies away from coal. English article in FT: https://on.ft.com/2FSbG5a German article in Spiegel Online: https://bit.ly/2B3VKJ2 #siemensPTI #EnergyTransition #coal Info: Picture shows coal power plant Lünen in Germany, with Siemens turbine and generator, 750 MW @ 46% efficiency, making it the most efficient coal power plant in Europe at commissioning in 2013
Managing Director, Head of Sustainable Finance at Danske Bank Large Corporates & Institutions
Der Spiegel reports that a coal phase out roadmap has today been agreed by the German ”coal commission”, a working group set up by the German government. According to Der Spiegel, the roadmap, if implemented by the Government, entails closure of all German coal fired power plants by 2038 with shutdowns starting in 2022. The regions affected by this would recieve Euro 40bn in restructuring support over the coming 20 years. Spiegel also reports that the energy companies will be compensated for early closures (amount not known by Spiegel). I think this is an important signal by Germany that the Paris agreement is taken seriously. Or turning it around, if Germany as a rich and hugely coal dependant nation would not phase out coal, other coal dependant nations could always point to Germany and say ”if they can’t afford it, how could we?” #TCFD #transitionrisks #transitionopportunities
Germany to phase out coal by 2038 Coal Commission announced today full exit from coal based power production in Germany latest until 2038. Significant capacity will be shutdown already in next four years (on top of the nuclear exit that will happen until 2022) resulting in >20.000 MW of hard coal and lignite plants that will be shutdown already until 2030. Strong commitment to reduce climate change impact. Finding the balance between affordability and security of supply will be a challenge in the years to come but there are so many great ideas and existing concepts to support this important transition. https://lnkd.in/djNh_u2