Germany, meanwhile, is preparing for one of the most ambitious transitions ever attempted within an industrialized country’s energy landscape. The country is committed to phasing out coal-fired power generation altogether by 2038 at the very latest. In a surprising turn of events, the eastern region just announced the coming closure of one of its biggest lignite mines. This will shutter operations three years in advance of the original timetable—by 2030. This positive decision underscores a larger movement sweeping across our country. As renewable energy grows at an astounding rate, we’re moving on from coal.
The effort to phase out coal has made impressive inroads in western Germany and ultimately end coal burning by 2030. Yet, this aggressive timeline has come under fire and scrutiny from experts and lawmakers. Eastern Germany takes a hard line on coal. For the region, it became a linchpin of both energy security and economic support, perhaps more precariously situated due to the lack of diversified economic bases elsewhere.
Economic Factors Driving Change
The financial feasibility of coal extraction in Germany has recently, and dramatically, changed. This drop occurs in the context of a booming wind and solar energy market. As these renewable sources continue to increase, they add to a problematic surplus of electricity supply, particularly in the summer months. Consequently, many energy industry observers predict that operations at coal plants could become economically unfeasible well before the targeted 2038 deadline for full coal phase-out.
Combined with the surge of new renewable energy, carbon pricing in Germany has driven up the cost of using coal electricity. Economic pressures are forcing a major reevaluation of coal’s continued role in our nation’s energy mix. In fact, western Germany is in the process of phasing it out—in a hurry. State leaders in eastern Germany are deeply concerned about their region’s lopsided dependence on coal. They are concerned that such a dependence would put local jobs and energy security at risk.
The Regional Divide
The gulf between eastern and western Germany’s attitude toward coal policy is still clear. Western states in particular have been on the attack for advancing renewable energy and coal’s retirement. By comparison, eastern Germany is adamantly opposed to extending its coal phaseout for a few more years. This difference exemplifies the economic coal dependence disparities throughout the nation.
Eastern Germany is the most at-risk region in this regard, as the country’s most populous region heavily counts on lignite for both energy generation and regional employment. Alternatively, the closure of lignite mines is a significant obstacle. State leaders would like to see a more measured transition that considers the socio-economic effects on the region. They contend that an abrupt withdrawal would threaten both local economies and the resiliency of their workforce.
Future Outlook
As Germany continues down this path, striking the proper balance between energy security and environmental sustainability will be key. Solar and wind energy’s exponential growth is changing the country’s energy landscape at a rapid pace. It takes an important step to decrease reliance on coal while increasing economic costs.