Germany to move ahead quickly on implementing coal exit

German Economy Minister Peter Altmaier told has told broadcaster ARD that the ruling coalition will move quickly to begin implementing the recommendations of a government-appointed commission for exiting coal power by 2038.

At the same time German Environment Minister Svenja Schulze said exiting coal as an energy source would send a positive signal internationally, and need not necessarily drive German energy prices higher.

Reuters Newsagency reports Ms Schulze told the Funke Mediengruppe newspaper chain she was satisfied with the work of a government-appointed commission, which has proposed shutting down the last of Germany’s coal-fired power plants by 2038 at the latest.

A member of the Social Democrats, junior partners in Chancellor Angela Merkel’s ruling coalition, Ms Schulze said she had not studied the commission’s recommendations in detail.

However, studies conducted by her ministry had shown than exiting coal would “by no means lead to higher electricity prices.”

“I am convinced that a strong industrial country like Germany can master the energy revolution and become stronger and more modern in the process,” she added.

She said regions that now produced coal would remain important players in the German energy market through investment in new technologies, renewable energy, and climate protection.

A government-appointed commission proposed providing at least €40 billion in aid to regions affected by the phase-out.

The German government and 16 regional states must now implement the proposals.

They embody Germany’s strategy to shift to renewable energy, which made up more than 40 per cent of the energy mix last year, beating coal for the first time, and follow a 2011 decision to halt nuclear power.

“Implementing the deal would place Germany once again among international climate protection frontrunners,” said Ronald Pofalla, one of four commission leaders and former head of Angela Merkel’s Chancellery.

“Germany can show that it can remain a highly industrialised nation while protecting the climate.”

Stopping the use of coal is more difficult for Germany in comparison to many other countries because it is still heavily reliant on the fossil fuel, some of which is still mined domestically, and because it is phasing out nuclear power at the same time in its landmark energy transition or Energiewende, towards renewable energy.