Released February 04, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany will stop using coal to generate electricity by 2038, according to the recommendations from the government-appointed coal commission panel.
The 28-strong Commission on Growth, Structural Change and Employment, which is comprised of representatives from industry, trade unions, science and environmental groups, has spent more than six months trying to broker a deal. Germany relies on coal for approximately 30% of its power, and the sector employs more than 60,000 people. More than 80 coal-fired plants will have to be closed within two decades.
"We made it," said Ronald Pofalla, head of the commission. "This is a historic effort," he told reporters in Berlin. The decision makes Germany the largest European country to set out plans to abandon coal in order to lower its greenhouse gas emissions. Coal-fired plants account for roughly 42 gigawatts (GW) of generation capacity, approximately 40% of Germany's power. The Commission's plan will see coal capacity reduced to 30 GW by the end of 2022 and to 17 GW by the end of 2030.
The government will have to help fund the closure with massive compensation payments to the tune of 40 billion euro ($45.6 billion) to affected coal miners, coal-producing regions and the operators of affected power stations that will have to be closed. The most affected regions will be the coal-producing regions of North Rhine-Westphalia, Brandenburg, Saxony-Anhalt and Saxony. The plan calls on the government to create up to 5,000 jobs in new roles where mines will be shut. Germany's coal plants are the largest producers of carbon dioxide (CO2) in Europe and the country has spent decades investing heavily in cleaner energy, including solar and wind. Industrial Info reported last month that renewable energy had overtaken coal to become the biggest power source in Germany for the first time in 2018. For additional information, see January 9, 2019, article - Renewables Topple Coal as Germany's Main Power Source.
Germany has previously ruled that it will shut down all of the country's 17 nuclear reactors by 2022, following the Fukushima nuclear accident in Japan in early 2011. Eight older nuclear reactors were shut immediately at that time. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.
Hans Joachim Schellnhuber, Commission member and director at the Potsdam Institute for Climate Impact Research (PIK) commented: "Germany is finding its way back to the climate protection path: the beginning of an orderly phase-out of coal-fired power generation has been made. This is an important step on the road to the post-fossil age--a step that also opens up new perspectives for the affected regions through innovation-driven structural change. The fact that the consensus was difficult to achieve, however, should not be concealed. Efficiency in the implementation and best possible use of taxpayers' money should certainly also be the focus of the legislative processes that are now to follow."
Affected German energy companies like RWE have claimed the proposals "would have serious consequences for its lignite business." It added: "From RWE's point of view, the scope of the power plant shutdowns demanded by the Commission is very ambitious, especially as Germany is phasing out nuclear energy by the end of 2022."
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.
The 28-strong Commission on Growth, Structural Change and Employment, which is comprised of representatives from industry, trade unions, science and environmental groups, has spent more than six months trying to broker a deal. Germany relies on coal for approximately 30% of its power, and the sector employs more than 60,000 people. More than 80 coal-fired plants will have to be closed within two decades.
"We made it," said Ronald Pofalla, head of the commission. "This is a historic effort," he told reporters in Berlin. The decision makes Germany the largest European country to set out plans to abandon coal in order to lower its greenhouse gas emissions. Coal-fired plants account for roughly 42 gigawatts (GW) of generation capacity, approximately 40% of Germany's power. The Commission's plan will see coal capacity reduced to 30 GW by the end of 2022 and to 17 GW by the end of 2030.
The government will have to help fund the closure with massive compensation payments to the tune of 40 billion euro ($45.6 billion) to affected coal miners, coal-producing regions and the operators of affected power stations that will have to be closed. The most affected regions will be the coal-producing regions of North Rhine-Westphalia, Brandenburg, Saxony-Anhalt and Saxony. The plan calls on the government to create up to 5,000 jobs in new roles where mines will be shut. Germany's coal plants are the largest producers of carbon dioxide (CO2) in Europe and the country has spent decades investing heavily in cleaner energy, including solar and wind. Industrial Info reported last month that renewable energy had overtaken coal to become the biggest power source in Germany for the first time in 2018. For additional information, see January 9, 2019, article - Renewables Topple Coal as Germany's Main Power Source.
Germany has previously ruled that it will shut down all of the country's 17 nuclear reactors by 2022, following the Fukushima nuclear accident in Japan in early 2011. Eight older nuclear reactors were shut immediately at that time. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.
Hans Joachim Schellnhuber, Commission member and director at the Potsdam Institute for Climate Impact Research (PIK) commented: "Germany is finding its way back to the climate protection path: the beginning of an orderly phase-out of coal-fired power generation has been made. This is an important step on the road to the post-fossil age--a step that also opens up new perspectives for the affected regions through innovation-driven structural change. The fact that the consensus was difficult to achieve, however, should not be concealed. Efficiency in the implementation and best possible use of taxpayers' money should certainly also be the focus of the legislative processes that are now to follow."
Affected German energy companies like RWE have claimed the proposals "would have serious consequences for its lignite business." It added: "From RWE's point of view, the scope of the power plant shutdowns demanded by the Commission is very ambitious, especially as Germany is phasing out nuclear energy by the end of 2022."
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.
