Industry sees little chance of earlier coal phase-out

Energy - Industry sees little chance of earlier coal phase-out

The industry sees little chance of an early coal phase-out in Germany. Industry President Siegfried Russwurm cited the lack of a strategy from Federal Minister for Economic Affairs and Climate Protection Robert Habeck (Greens) regarding incentives to build new gas-fired power plants as the reason for this. "It is extremely annoying that we could find ourselves in a situation where we have to continue operating coal-fired power plants for longer because there is not enough other reserve capacity."

The German government is focusing on renewable energy from wind and solar power to restructure the electricity system. The aim is for 80 percent of the electricity consumed in Germany to come from renewable sources by 2030. Currently, it is just over half.

Russwurm complains about the lack of a power plant strategy

Companies have long been waiting for a power plant strategy from Habeck, which was actually supposed to be presented in the summer. New gas-fired power plants are to step in as a "backup" in "dark doldrums" - when there is no wind and no sunshine - to cover the demand for electricity. They are initially to be operated with natural gas and later with climate-neutral hydrogen. However, energy companies have so far shied away from investing because the new power plants have not yet paid off.

Habeck had announced state subsidies in the billions. An incentive system is possible that rewards operators for maintaining power plant capacities. However, following a ruling by the Federal Constitutional Court, the German government will have to plug holes worth billions in the budget for 2024 and in the Climate and Transformation Fund.

"Private-sector investment will be needed, and this must be worthwhile - even if there are only a few operating hours per year," said Russwurm. "I'm a fan of expanding renewables. But honesty requires us to say that we need reserves for the dark doldrums. We are a long way from having sufficient storage capacity." Sufficient hydrogen-capable gas-fired power plants are a dream of the future.

Criticism of the government's assumptions

"When announcing its power plant strategy, the German government assumed that we would be able to import considerable quantities from abroad at times when electricity is scarce here and that we would therefore only need to add 25 gigawatts," said the President of the Federation of German Industries. "This is a highly optimistic thesis because it assumes that our neighbors will always have surplus electricity when we need it. But even 25 gigawatts of additional capacity means 50 new power plants." This is an immense ambition.

"To the extent that this expansion does not succeed, the Federal Network Agency will have little choice but to keep coal-fired power plants on the grid in order to maintain security of supply," said Russwurm. "And electric cars that run on electricity from coal-fired power plants would really be a serious setback for climate protection."

Russwurm: Earlier coal phase-out almost impossible

The traffic light coalition had agreed to "ideally" bring forward the coal phase-out to 2030 in order to prevent the emission of climate-damaging carbon dioxide. So far, however, an eight-year earlier phase-out has only been agreed in the Rhineland coalfield. It is controversial in the coalfields in eastern Germany.

When asked whether he still sees a chance of a coal phase-out in 2030, the BDI President said: "To be honest, I don't have the imagination for it." Building 50 gas-fired power plants at the same time in just a few years is hardly conceivable. There are only a few manufacturers who are capable of producing hydrogen-capable gas turbines, and this is neither easy nor inexpensive. "If 50 are to be ordered, planned, approved and built at the same time in Germany alone, that's an objective that doesn't seem very realistic to me."

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1. Despite the industry's push for an earlier coal phase-out, President Siegfried Russwurm of the German federal association of industries expressed skepticism, citing the lack of a clear strategy from Climate Protection Minister Robert Habeck for incentivizing new gas-fired power plants.
2. The federal government's focus on renewable energy aims to have 80% of Germany's electricity consumption come from renewable sources by 2030, currently at over half.
3. Russwurm criticized the lack of a power plant strategy, stating that without financial incentives for energy companies to invest in new gas-fired power plants, there may be a need to continue operating coal-fired power plants during periods of low renewable energy production.
4. Minister Habeck had announced state subsidies in the billions to encourage power plant operators to maintain capacities, but budget constraints due to a ruling by the Federal Constitutional Court have put those plans under pressure.
5. To ensure security of supply and discourage the use of electricity from coal-fired power plants, Russwurm emphasized the importance of private-sector investment in new gas-fired power plants capable of operating with climate-neutral hydrogen.
6. Russwurm expressed concern over the government's assumption that Germany can import sufficient electricity from neighboring countries to cover shortages, highlighting that even the addition of 25 gigawatts of capacity would require 50 new power plants, an ambitious target.
7. Despite the traffic light coalition's agreement to "ideally" bring forward the coal phase-out to 2030, Russwurm questioned the feasibility of reaching that goal, given the complexities of building and implementing 50 hydrogen-capable gas-fired power plants in a short period.

Source: www.stern.de