Germany May Extend Use of Coal-Fired Power Plants Amid Delays in Gas Plant Development

Germany May Extend Use of Coal-Fired Power Plants Amid Delays in Gas Plant Development

Berlin, The Gulf Observer: Germany’s reliance on its mothballed coal-fired power plants may extend well into the next decade, as the development of new gas plants falls significantly behind schedule, according to grid operator Amprion GmbH.

The warning comes amid growing concerns over the country’s energy security following the closure of its last nuclear power plant in 2023, which has further reduced Germany’s power generation margin. The coal plants, designed as a backup to ensure grid stability, can be activated on short notice, but their limited operational timelines pose challenges.

Speaking at the Handelsblatt Energy Summit in Berlin, Christoph Mueller, CEO of Amprion, stressed the urgency of reassessing the long-term role of coal in Germany’s energy mix.

“Some of these plants currently only have an operating perspective until 2026, with the vast majority until 2031,” Mueller said. “We should do a proper analysis now in case we need these power plants for longer.”

Germany’s energy regulator previously estimated that as much as 21 gigawatts of new gas plants would be required to meet the country’s goal of exiting coal by the end of this decade. However, plans for even a fraction of that capacity were scrapped by the government last month, raising questions about the feasibility of the coal phase-out target.

Keeping the coal reserve fleet operational currently costs more than €1 billion ($1.04 billion) annually, Amprion revealed. Coal operator Steag GmbH has already voiced concerns about the financial strain of maintaining power stations on standby.

Mueller warned that a delayed decision to extend coal operations could exacerbate costs. “If we only tell the operators in 2030 that they will be needed until 2035, it will definitely be more expensive, if longer operation is still possible at all,” he said.

Germany’s struggle to balance its ambitious decarbonization goals with energy reliability underscores the complexity of transitioning to a sustainable energy future.