Bundesnetzagentur publishes phase-out ranking for coal
Jochen Homann: "One step closer towards the end of coal-fired electricity generation."
Year of issue 2021
Date of issue 2021.07.01
The Bundesnetzagentur has published today the ranking list of hard coal-fired and small lignite-fired power plants as required by the German Act to Reduce and End Coal-Fired Power Generation (Kohleverstromungsbeendigungsgesetz – KVBG). The ranking lists the plants in chronological order, beginning with the oldest plant and based on the date each plant started operation.
"We now know the order in which the power plants remaining after the tendering processes will need to stop using coal to generate electricity" said Jochen Homann, Bundesnetzagentur President.
Statutory reduction
The ranking is one of the main pillars of phasing out coal by the end of 2038. At first, the list will only be used if the tendering processes held from 2022 onwards are undersubscribed and then only for the volume remaining after tenders have been awarded.
After the last tendering phase for the target date of 2026, only the ranking list will be used as the basis to determine which plants will be required to stop coal-fired generation as part of the "statutory reduction" process. The Bundesnetzagentur will then use the list to decide which hard coal-fired and small lignite-fired power plants will need to stop using coal and when. Operators of plants required to stop coal-fired operation in the statutory reduction process will not receive any direct compensation.
The ranking is based on the idea that the older a plant, the earlier it should stop using coal. This takes account of climate targets and environmental protection because the age of a plant is an indicator of its emissions. Investments in retrofitting a plant have been factored in.
Updates
The ranking list additionally includes details of plants that are firmly scheduled to withdraw or have already withdrawn from the market. This is important for plant operators because plants that are no longer classified as being active on the market cannot be part of the statutory reduction process. These plants include those that have already been awarded a tender. The list also provides details of plants that have been issued with a coal-fired operation ban or have stopped operation for other reasons. The details of the plants that are no longer classified as active will be updated regularly. The ranking list and further information are available online at www.bundesnetzagentur.de/Altersreihung (in German).
Background
By the end of 2038 there are to be no more coal-fired power plants producing electricity for the market in Germany. The coal phase-out is not only a milestone in the energy transition, it will also help to significantly reduce carbon emissions. It means that by the end of 2022 the amount of electricity generated from coal by hard coal-fired and lignite-fired power plants will gradually decrease to around 15 gigawatts (GW) each.
By the end of 2030 the amount generated is set to drop further to about 8 GW for hard coal-fired plants and 9 GW for lignite-fired plants.