According to representatives of Germany’s coalition government, the restart of inactive coal-fired power plants is being considered. The move is intended to ease rising energy costs triggered by the war in Iran.
Coalition officials outlined these plans in a conversation with Politico. The objective is to conserve gas, whose prices have surged sharply following the attack on Iran.
On Thursday, the German Bundestag passed a package of measures aimed at curbing rising energy prices. The legislation imposes limits on price increases by energy companies, though doubts have already emerged regarding its effectiveness.
“Temporary Restart”
Germany’s Minister for Economic Affairs and Energy, Katherina Reiche, stated that the package may prove insufficient if the crisis persists.
Earlier this week, Reiche—who belongs to the same wing of the coalition as Chancellor Friedrich Merz—suggested that the European Union’s net-zero emissions target should be relaxed.
Potential measures under discussion by Social Democrats and Christian Democrats include the temporary reactivation of hard coal-fired power plants. These reserve capacities are intended to prevent supply bottlenecks and stabilize electricity prices.
Major energy companies such as Steag had already been pushing for increased use of reserve coal capacity even before the U.S. and Israeli strikes on Iran in late February, arguing that it could serve as a bridge until new gas-fired power plants are built.
Currently, reserve power plants are primarily used to stabilize the grid during winter periods. This means operators are reimbursed for costs but do not generate profit, leaving existing capacity largely unused.
Germany maintains a reserve fleet of coal-fired power plants with a capacity of approximately 6.7 gigawatts. In theory, this could supply electricity to around 7 million households, according to a Steag spokesperson.
“Even on a typical day with low renewable energy output, reserve power plants could reduce electricity prices by up to 60 percent,” the spokesperson added.
He also noted that the plants could be brought online within 12 hours following a request from the grid operator.