BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X


German coal drops to 37% in 2017 power mix as phase-out starts: BDEW

London (Platts)--20 Dec 2017 923 am EST/1423 GMT


The share of coal in Germany's power mix has dropped sharply in 2017 with the combined lignite/hard-coal-fired power plant output accounting for 37% down from 40.3% in 2016, energy lobby group BDEW said Wednesday.


  • Combined coal/lignite share down from 40.3% in 2016
  • Hard-coal output hit hardest by closures, rising prices
  • Gas-plant output inches higher to 13.1% from 12.5%

According to the lobby group, the market-driven phase-out of coal has already started.

"The data shows impressively that an accelerated move from carbon-intensive to low-carbon forms of power generation is already happening," BDEW chief Stefan Kapferer said.

The BDEW, whose data includes most gas-fired power plants, estimated that the share of gas in the power mix increased to 13.1% this year from 12.5% in 2016.

Article continues below...


Request a free trial of: Coal Trader InternationalInternational Coal Report
International Coal Report

Business executives, traders, risk managers and other mining and energy professionals can be more profitable and stay ahead of the competition by getting the full story and the latest prices from Platts Coal Trader International. Request a FREE trial to see how Platts Coal Trader International can meet your needs.

Request a trialRequest More Information


Nuclear fell to 11.6% from 13% in 2016, it said.

Renewables output registered the biggest annual gain -- mainly driven by rising wind output -- to account for 33% of the 2017 power mix, up from 29.1% in 2016, it said.


COAL CLOSURES


Kapferer said the gradual phase-out of lignite and hard-coal has already started with six hard-coal plants taken offline this year in addition to the two lignite units that were moved into a reserve mechanism no longer participating in the wholesale market.

Based on the grid regulator's closure list, a further 14 hard-coal plants have applied for closure, with the BDEW pointing at changed market fundamentals with rising coal and carbon pricing making older coal-fired power plants no longer economically viable, it said.

According to the BDEW, the German power sector was on track to meet its 2020 carbon-cutting target with the BDEW having presented a proposal to remove an additional 5 GW of coal capacity from the market by 2020 through an auction-based system with compensation for the operators.

However, due to the accelerated nuclear exit in 2021 and 2022, the current oversupply of power will turn into a structural undersupply by 2023 with any further closures only possible if politicians improved the framework conditions for new gas-fired power plants beyond 2023, the BDEW said.

Following the inconclusive election in September, Germany has been without a proper government for a record 12 weeks after initial talks between Chancellor Angela Merkel's CDU/CSU, the Greens and the FDP collapsed in November amid questions over how many coal plants to close. A renewed attempt to form a coalition between CDU/CSU and the SPD was set to start in January.

--Andreas Franke, andreas.franke@spglobal.com
--Edited by Dan Lalor, daniel.lalor@spglobal.com




Copyright © 2018 S&P Global Platts, a division of S&P Global. All rights reserved.