German industry warns coal phase-out may take a while

The plan to replace coal-fired plants by 2030 is “unrealistic,” lobby chief Siegfried Russwurm has warned

Berlin’s plan to phase out coal-fired power plants ahead of schedule is likely to fail, the head of the German industry lobby BDI, Siegfried Russwurm, told reporters on Saturday. He said the federal government lacks a strategy to persuade private companies to construct new gas-fired stations within the next seven years.

It is extremely annoying that we could find ourselves in the situation of having to continue operating coal-fired power plants for longer because there is no sufficient other reserve capacity,” Russwurm stated.

Germany intends to stop using coal for generating electricity by 2030, eight years earlier than the official target date. In restructuring the electrical grid, the government wants to rely on renewable sources such as wind and solar. However, power from gas-fired plants is planned as a backup when there is not enough from renewables to cover demand. German companies have been waiting for Berlin to outline a strategy for how the construction of these new plants, which will initially be operated with natural gas and later with climate-neutral hydrogen, will be funded.

According to Russwurm, the government needs to provide incentives for private enterprise to build the plants.

It’s going to take private investment, and it has to be worth it – even if it’s just a few operating hours a year. I am a fan of expanding renewables. But honesty requires us to say that we need back-ups. We are a long way from having sufficient storage capacity,” Russwurm warned, noting that the country needs at least 50 new gas-fired power facilities.
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If 50 are to be ordered, planned, approved and built at the same time, that is an objective that seems unrealistic to me. And if this expansion does not succeed, the Federal Network Agency will have little choice to maintain security of supply other than to keep coal-fired power plants connected to the network,” he stated.

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About Stu Turley 3394 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.