Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Germany may return to using coal

May, 24 2022
watermark Economic news

Germany has announced that it plans to return coal-fired or oil-fired power plants in the event of gas supplies from Russia being cut off.

According to the proposed bill, Germany can increase coal-fired generation in case of gas shortage or in case of a threat of gas shortage and the need to reduce its use for electricity generation. In particular, the German government will be able to activate coal facilities for up to six months without parliamentary approval. These emergency powers will be valid until March 31, 2024.

As you know, Germany is striving to significantly reduce the use of coal in stages by 2030. However, the authorities recognize that at the moment, in the conditions of the energy crisis, it is important to keep coal-fired power plants in reserve for a longer time.

To date, there are energy enterprises with a combined capacity of almost 6 GW in the country's reserve, many of which should be closed as part of the program of gradual withdrawal from coal power.

It is also worth noting that the rejection of fossil energy was one of the central election promises of the German government, which came to power in December last year. According to the plan, in 2022, Germany was to abandon coal–fired power and make decisions on the closure of nuclear power plants, and by 2035 – to become climate neutral.