Germany Set to Pay More Coal Plants to Prevent Blackouts

Germany
  • Reserve plant capacity needs to double by 2026, regulator says
  • Power stations on standby are mostly coal-, gas-fired plants

Germany’s coal phase-out plans face a potential setback after the energy regulator predicted the country will need a lot more fossil-fuel power plants on standby to help keep the lights on in the coming years.

The need for so-called reserve capacity to cover shortfalls in wind and solar generation during the 2026/27 winter period is set to reach 9.2 gigawatts, double the amount put aside for the last heating season, the regulator said Tuesday. That’s even more than the 8.3 gigawatts of mainly coal-fired backup deployed in 2022, when Russia curbed pipelined natural gas supplies to Europe.

While Germany hopes to phase out coal entirely by 2030 — eight years before a legal deadline — many companies have already warned it might not have enough alternative power sources to do so by then. The country’s grid-reserve units are mainly coal and gas plants, with batteries only providing a fraction of the backup power. Germany shuttered its remaining nuclear plants last year.

Keeping Standby German Coal Plants Is Too Costly, Says Operator

Europe’s largest economy has made huge strides in the transition to renewables — which now make up half of the country’s generation — but it’s still not enough to meet demand when the weather’s calm and the sun isn’t out. The need for more reserve plants is further heightened by delays in the country’s grid expansion, which means electricity can’t be fully transported to regions with high consumption.

To help shrink its reliance on coal, the government wants to build 10 gigawatts of new gas power plants that can later switch to hydrogen. However, as details of the program aren’t even sketched out yet, it’s unlikely that these units will be running before the end of the decade.

Source: Bloomberg.com

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About Stu Turley 4087 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.