2030 coal exit in western Germany increasingly unlikely given gas power plant lag - media report

Delays for Germany’s plans to build new gas-fired power plants make the agreed complete coal phaseout in the west of the country by 2030 increasingly unlikely, reports energy and climate newsletter Tagesspiegel Background.

The coal exit in the western lignite region of North Rhine-Westphalia depends on the availability of backup generation capacity, which probably won’t be available at that date given continued lags, the article said. Following earlier delays, economy minister Katherina Reiche said in November that first tenders for the plants could start in March, but sources close to the ministry told the newsletter that they will only start in the summer. Energy sector legal experts have long said that due to the lengthy process, first auctions are unlikely to start before late 2026.

Germany plans to exit coal-fired power plants nationwide in 2038 at the latest according to its coal exit law, but the western coal mining and heavy industry state North Rhine-Westphalia decided in 2022 to complete the phase-out by 2030. Under this agreement, backup plants should already be under construction today. The government is now aiming to complete the new power plants by 2031 at the latest through tenders for a total of 12 gigawatts, for which the European Commission gave preliminary approval for the state aid last week.

The delay makes it increasingly likely that a fallback option in the deal between the government and energy company RWE, which operates coal plants and opencast lignite mines in the region, will come into effect. It provides for the company’s lignite-fired power plants with a capacity of 3.6 GW to be transferred to a reserve. RWE told the newsletter that the agreement means that “RWE's coal-fired power generation business will end on 31 March 2030”, adding it was up to the government whether to transfer it into the reserve.

According to the agreement, the economy ministry must decide by this summer at the latest whether the reserve option in North Rhine-Westphalia will take effect on 1 April 2030. The ministry is meant to base its decision on a report on the consequences of the coal phase-out, which is due to be published this summer.

Former Green economy state secretary Michael Kellner warned earlier this month that a continued operation of coal power plants or keeping them in reserve “not only damages the climate, but is also very expensive.”