Released September 09, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany's government has presented a bill to provide 40 billion euro ($43.9 billion) in support to the regions of the country that will be hardest hit by its decision to phase out coal-fired power and coal mining.
However, no plant closure dates have been finalised as the government remains locked in negotiations with power plant operators regarding the conditions for the shutdown. Power plant owners will be liable for billions of euro in payments for the early shutdown of their plants. Coal-fired power plants supply approximately 30% of Germany's electricity and employ more than 60,000 people. More than 80 coal-fired plants will have to be closed within two decades. The closures will also severely impact the country's lignite mining industry.
The proposed funding will be split into 14 billion euro ($15.4 billion) over the next two decades to lignite mining regions that will be impacted by the closure of coal-fired power generation. The funding will support grants to stimulate the economy "in a wide range of areas," the government stated, including business-related infrastructure, the improvement of public transport, broadband and mobility infrastructure and environmental protection and landscape management.
Another 26 billion euro ($28.5 billion) will be made available for the expansion of research and development programs or the establishment of federal institutions. In addition, the federal government wants to expand the transport infrastructures of the regions to make them "stronger and faster".
Peter Altmaier, federal minister for economic affairs and energy, said: "We are fulfilling our promise. With the announcement today...we ensure the structural development of coal regions until 2038. The coal withdrawal must become an opportunity for the regions concerned. With today's law, we set the course for aid to flow quickly and for structural change to succeed. We want to maintain and expand jobs, sustainably improve the quality of life of people living in the regions, and at the same time make an important contribution to climate protection through the phase-out of coal-fired power generation."
In February, Industrial Info reported that Germany would stop using coal to generate electricity by 2038, according to the recommendations from the government-appointed coal commission panel. The 28-member Commission on Growth, Structural Change and Employment comprises of representatives from industry, trade unions, science and environmental groups. For additional information, see February 4, 2019, article--Germany To Phase Out Coal By 2038.
Germany's energy industry association, BDEW, welcomed the funding announcement. "It is good that the federal government has set the course so that the first part of the recommendations of the structural commission can be implemented," said Stefan Kapferer, chairman of the BDEW executive board. "Equally important and urgent is the speedy adoption of energy policy decisions. The energy industry is in the starting blocks to further promote the energy transition and the transformation of the power plant fleet. But we finally need clarity and reliable framework conditions for the reduction of electricity production from hard coal and lignite. The federal government must finally make pace here."
He added: "And we have to think today about the time after 2023, when the last nuclear power plant will go offline: we urgently need incentives for the construction of secure power in the form of low-carbon power plants and concrete measures to strengthen cogeneration technology. The expansion of renewable energies must also be significantly accelerated in order to reach the 65% target. This also requires more speed in grid expansion - and the support of local politics."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
However, no plant closure dates have been finalised as the government remains locked in negotiations with power plant operators regarding the conditions for the shutdown. Power plant owners will be liable for billions of euro in payments for the early shutdown of their plants. Coal-fired power plants supply approximately 30% of Germany's electricity and employ more than 60,000 people. More than 80 coal-fired plants will have to be closed within two decades. The closures will also severely impact the country's lignite mining industry.
The proposed funding will be split into 14 billion euro ($15.4 billion) over the next two decades to lignite mining regions that will be impacted by the closure of coal-fired power generation. The funding will support grants to stimulate the economy "in a wide range of areas," the government stated, including business-related infrastructure, the improvement of public transport, broadband and mobility infrastructure and environmental protection and landscape management.
Another 26 billion euro ($28.5 billion) will be made available for the expansion of research and development programs or the establishment of federal institutions. In addition, the federal government wants to expand the transport infrastructures of the regions to make them "stronger and faster".
Peter Altmaier, federal minister for economic affairs and energy, said: "We are fulfilling our promise. With the announcement today...we ensure the structural development of coal regions until 2038. The coal withdrawal must become an opportunity for the regions concerned. With today's law, we set the course for aid to flow quickly and for structural change to succeed. We want to maintain and expand jobs, sustainably improve the quality of life of people living in the regions, and at the same time make an important contribution to climate protection through the phase-out of coal-fired power generation."
In February, Industrial Info reported that Germany would stop using coal to generate electricity by 2038, according to the recommendations from the government-appointed coal commission panel. The 28-member Commission on Growth, Structural Change and Employment comprises of representatives from industry, trade unions, science and environmental groups. For additional information, see February 4, 2019, article--Germany To Phase Out Coal By 2038.
Germany's energy industry association, BDEW, welcomed the funding announcement. "It is good that the federal government has set the course so that the first part of the recommendations of the structural commission can be implemented," said Stefan Kapferer, chairman of the BDEW executive board. "Equally important and urgent is the speedy adoption of energy policy decisions. The energy industry is in the starting blocks to further promote the energy transition and the transformation of the power plant fleet. But we finally need clarity and reliable framework conditions for the reduction of electricity production from hard coal and lignite. The federal government must finally make pace here."
He added: "And we have to think today about the time after 2023, when the last nuclear power plant will go offline: we urgently need incentives for the construction of secure power in the form of low-carbon power plants and concrete measures to strengthen cogeneration technology. The expansion of renewable energies must also be significantly accelerated in order to reach the 65% target. This also requires more speed in grid expansion - and the support of local politics."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
