Germany agrees total coal exit

Via the FT:

The German government has struck a deal with the country’s coal-producing regions to phase out the use of coal power by 2038 in return for compensation and benefits worth €40bn.  Berlin will also set aside €4.35bn for utilities such as RWE, which will close some of their coal plants early.

The deal removes one of the last obstacles to a historic energy transition in Europe’s largest economy.

Angela Merkel’s coalition government pledged last year to switch off all coal-fired power stations but has since battled to secure political support from federal states such as North Rhine-Westphalia, Brandenburg and Saxony, where Germany’s mines and power plants are concentrated.

The deal, presented by senior ministers on Thursday, means Germany will end the use of nuclear and coal power at the same time, sharply increasing the country’s dependence on renewable sources of power such as wind and solar.

How is this even possible? Simple. The renewable/battery killer app is here at the utility level:

Price of solar and batteries over next 5 years

Price of solar and batteries over next 5 years

And soon the household level:

Worldwide Energy source costs compared
Retail prices of Solar over next 5 years

Given prices for renewable plus battery have been falling at much higher rates than 10% per annum, Germany will have plenty of time to exit coal.

Hello SmoCo.

David Llewellyn-Smith
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Comments

  1. How is this even possible, indeed.

    Renewables are not scalable – the efficiency rapidly falls off as you try to scale up. The reason is simple. One starts with deploying renewables on the best available sites and then, as such best sites are exhausted, one tries to look for the second-tier, third-tier sites, etc., for further deployment.

  2. NoodlesRomanovMEMBER

    That payment to the utility company looks interesting. Would be good to see the basis of compensation – watch the likes of AGL go from planning to shutdown a CFPS and then upgrading the value on their books in anticipation.

  3. that’s 45 million tone less global coal trade demand – equivalent to annual production at the future Carmichael coal mine

    • That is the crux of the matter, less people means less demand for everything, if we were 1 billion people we would not be in this situation.

  4. matthew hoodMEMBER

    So have they also committed to not import any energy that is coal or nuclear…..asking for France.

    • Shhhh, don’t tell them that… it will ruin their idea that an island country, such as Australia, can rid itself of coal/not have to revert to nuclear.

  5. reusachtigeMEMBER

    Sounds like Germany wants to become poor. Meanwhile, in China, a far superior nation…

  6. 2038 sounds like along time from now. Who exactly made that promise? Anyone can say any S!?t & sound superior & all green & sanctimonious these days. I mean we’re bashing our politicians for far out promises & then we get this! 2038 might as well be 2158!