Germany May Need to Extend Coal-Fired Power Plant Operations Amidst Gas Plant Delays

Amidst delays in the construction of new gas-fired power plants, German grid operator Amprion GmbH has issued a warning that the country may need to extend the availability of its mothballed coal-fired power stations.

Since the closure of Germany's last nuclear power plant in 2023, the country's power generation margin has diminished. Coal plants serve as backup to ensure grid stability and can be activated on short notice. However, Christoph Mueller, Amprion's CEO, emphasized the potential need to extend their availability beyond the next decade if no viable alternatives are available.

"Some of these plants currently have an operating perspective until 2026, while the vast majority is scheduled for retirement by 2031," Mueller said. "We should conduct a thorough analysis to determine if we require these power plants for a longer duration."

Two years ago, Germany's energy regulator estimated the need for 21 gigawatts of new gas plants to facilitate the planned coal phase-out by the end of this decade. However, the government recently scrapped a plan to build a portion of that capacity.

Maintaining the reserve fleet currently costs over €1 billion ($1.04 billion) annually, according to Amprion. Steag GmbH, a coal operator, has expressed concerns about the financial viability of keeping power stations on standby.

"If we inform operators in 2030 that they will be required until 2035, it will undoubtedly incur higher costs, assuming extended operation is still feasible," Mueller added.