Federal Minister for Economic Affairs Katherina Reiche (CDU) plans to temporarily bring coal and oil power plants back into the electricity market. This step is justified by the escalation in the Middle East and the strained supply situation. This information comes from a draft memorandum from the Federal Ministry for Economic Affairs (BMWE) dated October 16, reported by the magazine Politico. Coal and oil power plants emit significantly more CO2 than gas power plants.
Blocked transport routes and destroyed extraction and export facilities in the Middle East are restricting the availability of fossil energy sources, according to the draft. Therefore, the ministry argues that Germany faces an increased risk of supply shortages, especially regarding natural gas.
The draft states that if there is a natural gas shortage, additional generation capacities are to be made available to the electricity market for a limited period. Power plants that currently serve as network reserves and utilize coal or mineral oil are intended for this purpose.
Currently, these reserve power plants can only be used during electricity shortages. The bill aims to allow their return to the market even without this condition, effective by the end of March 2028 at the latest. The ministry states that this will help reduce natural gas consumption and mitigate the dependence of Germany’s power supply on geopolitical tensions in the Middle East. The measure is intended to supplement the instruments within the Gas Emergency Plan.
However, according to the draft, the Federal government must first declare the alarm or emergency level of the Gas Emergency Plan before a reserve power plant can participate in the electricity market. The return is then supposed to be permissible via a regulation from the BMWE. Participation is intended to be voluntary for the operators. The ministry’s draft, conversely, rejects the reactivation of already shut-down coal-fired power plants. The draft regarding changes to energy economy law has not yet been finalized.
