Germany Revives Coal Power: Balancing Cost, Supply and Climate
By John Laurenson, Business reporter – 6 hours ago
Coal still fuels 20% of German electricity
Germany shut down its last nuclear plant in 2023 and has pledged to phase out all coal by 2038. However, about one‑fifth of the country’s power grid still relies on lignite, the cheap and polluting soft coal mined in eastern Germany.
Renewables lead but gas power rises
Last year renewables supplied 59% of German electricity, but winter demand spikes leave gaps that natural gas plants help fill. Gas now accounts for 13% of the mix. When global gas prices surged following the Israel‑Iran confrontation, the economics of lignite became more attractive.
Political tug‑of‑war over the coal phase‑out
The ruling coalition is split: the centre‑right CDU/CSU favor extending coal use for security and affordability, while the left‑wing SPD opposes any loosening. Chancellor Friedrich Merz warned, “We must supply this country with electricity… I am not prepared to jeopardise the core of our industry simply because we have adopted phase‑out plans that have become unrealistic.”
Possible compromise: keep six imported‑coal plants running
Six German power stations that use imported hard coal—less polluting than domestic lignite—are currently only backup for the grid. Their owners, the Steag Iqony Group, argue for permanent operation, citing the ability to power millions of homes and strengthen supply security.
Government decision to come this year
A parliamentary committee will study the proposal, and the government will publish a statutory review in August. The review will evaluate the impact of the coal phase‑out on supply, security and price, potentially speeding up or slowing the process.
Images & Captions
AFP via Getty Images – Vapour billowing from the cooling towers of a German coal power station.
AFP via Getty Images – Mining machines at an open‑cast lignite coal mine in eastern Germany.
AFP via Getty Images – German wind farm, showing pylons spread across flat fields.
