Energy Crisis Pushes Germany Toward Coal Again
Germany is considering bringing reserve coal plants back online as rising energy costs expose weaknesses in its power system. Prices have surged due to escalating tensions in the Middle East and disruption to global oil and LNG supplies, with recent strikes linked to the Iran conflict tightening gas markets across Europe.
The proposal could see up to 6.7 GW of coal capacity reactivated, enough to power millions of homes and stabilise prices during periods of low wind and solar output. While renewables now supply the majority of Germany’s electricity—around 57% in 2024—their variability has highlighted the need for reliable backup.
The issue has reignited questions around Germany’s decision to phase out nuclear power in 2023. Critics argue the move removed a key source of stable, low-carbon electricity, increasing reliance on fossil fuels during periods of high demand. Chancellor Friedrich Merz has described the phase-out as a regret, but one that is now effectively irreversible, highlighting the long-term impact of past energy decisions.
Coal, however, remains the most carbon-intensive option. Expanding its use would raise emissions and clash with climate targets, even as it offers short-term relief for energy prices and security.
The situation underlines a broader challenge facing energy systems: balancing clean power expansion with reliability, particularly during times of geopolitical uncertainty and supply disruption.