Germany has already surpassed its 2028 interim goal for cutting coal-fired power capacity, eliminating the need to order additional plant shutdowns for a second consecutive year, the Federal Network Agency said Monday.
The country had aimed to reduce coal generation by 8.7 gigawatts by 2028. As of September 1, capacity cuts had exceeded that figure by roughly 10%, according to the regulator’s update.
Almost two-thirds of Germany’s electricity is now generated from renewable sources, with excess solar power often pushing wholesale prices below zero and eroding the profitability of coal plants. Despite this progress, Germany remains the European Union’s largest polluter and still relies heavily on fossil fuels for parts of its energy mix.
The federal government plans to phase out coal entirely by 2038. However, large lignite-burning plants tied to mining operations have been granted more time to close in order to cushion job losses. Smaller lignite and hard-coal facilities, initially allowed to participate in voluntary shutdown auctions until 2026, can be closed earlier if deemed necessary by regulators.
Coal operators must also buy emissions permits under the EU Emissions Trading System, where carbon prices have ranged between €60 and €84 per ton this year, settling near €74 at present.
