Germany’s coal‑powered stations have long been a cornerstone of its electricity supply—currently accounting for roughly 20% of national generation. Yet the country has set ambitious goals to shut down coal by 2038, with lignite (the low‑grade, highly polluting soft coal) slated for an earlier exit in 2030.
Recent conflicts have pushed global natural‑gas prices higher, prompting policymakers to revisit the viability of coal as a low‑cost, reliable backup to wind and solar, especially during winter months. While gas offers about half the CO₂ emissions of coal, Germany imports 95% of its gas, making coal’s domestic supply more attractive in an uncertain market.
Chancellor Friedrich Merz, speaking in March, emphasized the need for a resilient industrial base and hinted that the coal phase‑out might be re‑examined. The political divide is stark: the centre‑right CDU/CSU parties lean toward extending coal use, whereas the left‑wing SPD is firmly opposed, warning against “new fossil lock‑in effects.”
Industry voices such as the German Chemical Industry Association’s Wolfgang Große Entrup argue that renewable alone cannot guarantee the reliability and affordability that businesses require in the near term. At the same time, research institutes like Öko advocate for a rapid scale‑up of renewable capacity.
Energy company LEAG, Germany’s second biggest lignite miner, welcomed the possibility that coal could re-enter the mix, highlighting its ability to quickly mobilize reserves to meet demand. However, some experts argue that allowing coal only for backup could secure a “strategic reserve” without undermining the broader energy transition.
Germany’s grand coalition faces a crucial decision this year: either uphold the 2030 lignite shut‑down or keep a limited portfolio of lignite and hard‑coal plants operational as a contingency. An upcoming statutory review in August will assess coal’s impact on supply security, affordability, and the overall transition strategy. The outcome will likely chart the country’s energy future amid global volatility and climate imperatives.
