Germany’s Coal Commission has announced that it reached agreement on a phase out use of coal in the country by 2038 at the latest, possibly by 2035 if conditions prove favourable. The proposal said: “The Commission recommends the end of 2038 as the closing date for coal-fired power generation. Under the right conditions, this date could be brought forward to 2035 at the earliest.”
As a first step, a total of around 12.5 GW of capacity, nearly one third of the total, should be shut down by 2022. However, it is uncertain whether the fragile government coalition will be able to provide the leadership necessary to achieve the planned targets. Both Chancellor Angela Merkel’s CDU and her coalition partner, the Social Democrats, have fallen in the polls, and elections in east German states, including lignite mining states, are approaching. There are concerns that voters in these states might perceive any deal from the coal commission as a burden.
The deal includes suggestions for ways to compensate coal plant operators and buffer the effect on industry and households from any rise in power prices.