During the Iran-Russia conflict, the German hard‑coal industry claims it can help curb soaring energy prices.
Axel Bethe, chairman of the Association of Coal Importers, told the “Frankfurter Allgemeine Zeitung” (FAZ) that coal generators are ready to supply almost seven gigawatts in reserve for the market. “That covers roughly ten percent of Germany’s peak load” he said. “It would bring prices down significantly and save a lot of gas-something we urgently need for heating, industry, and to replenish storage”.
Power‑plant operators echo the need for reserve capacity. Andreas Reichel, chairman of the Essen‑based energy company Steag, told the FAZ that generators are “in the starting positions” to use reserve plants for a limited period. He cited the coalition agreement of the Union and SPD, which states that reserve power should be used not only to avoid supply crises but also to stabilize electricity prices.
The federal Ministry of Economics confirmed to the FAZ that the coalition mandate is being examined. At the same time, officials warn that market operation of reserve plants is complicated, costly, and carries risks to grid stability as well as legal challenges, including EU state‑aid rules.
In the so‑called capacity reserve, only gas plants are listed, meaning their market use would not ease storage or price pressures. The net reserve is likewise limited because coal plants are already constrained by dispatch requirements (redispatch). Additional market use could jeopardize system operation. Many plants are old, inefficient, and have high production costs.
Bethe counters these assessments, arguing that even older coal blocks can generate electricity at costs below €120 per megawatt‑hour. Open gas turbines run at about €170/MWh, he noted. He also points out that the climate performance of coal is no worse than that of liquefied natural gas (LNG).
Reichel agrees that there is “no either‑or” between system stability and price reduction; plants can satisfy both. He claims deploying reserve capacity is not only feasible but economically imperative: “It would immediately lower electricity prices and gas consumption, creating a win‑win situation for industry and consumers alike”.
