German energy minister Sigmar Gabriel has rejected the idea of establishing a commission to analyse ways of a coal power phase-out. He called the nuclear exit a “brave decision,” but cautioned one should “not attempt to repeat such experiments too often.” E.ON and RWE are radically restructuring their operations to stay afloat as Berlin keeps embracing renewables.
Persistently high use of lignite and hard coal for power generation is likely to make Germany miss its target to curb emissions by 40% on 1990 levels by the end of the decade. Overall CO2 emissions from the German power sector have barely dropped since the turn of the millennium and remain over 300 million tonnes per annum.
This paradox of dirty coal-fired plants complementing clean energy sources like wind and solar has prompted the idea of a coal exit. Support for such proposals also came from the environment minister Barbara Hendricks who is due to produce pathways for green energy and emissions reduction before the summer recess of parliament.
Gabriel, in charge of the energy and economics ministry, adamantly opposes any such plans as this would jeopardise Germany’s only cheap domestic fuel source.
He also resisted appeals to set up a Capacity Market, which some wish to install as a type of “social security for utilities.” Instead, he favours beefing up the existing energy market by allowing prices to spike at times of supply scarcity.