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Markets & Forecasts

Gas set for tentative comeback in Germany

The country’s plans to phase out coal-fired power are set to benefit gas, as carbon prices have given the most-efficient gas plants higher profit margins The country’s plans to phase out coal-fired power are set to benefit gas, as carbon prices have given the most-efficient gas plants higher profit margins.
By Peter Stewart 3 April 2019 Europe & Russia / Supply & Demand 0 34096
Efforts to phase out coal in German power generation have been boosted by the long-delayed publication of plans by the Coal Commission setting out a schedule for the phase-out. (RWE)

Although a mix of coal and renewables will continue to dominate Germany’s electricity supply mix into the future, gas looks set to increase its role as the country weans itself off coal as part of long-term plans to meet its commitments under the Paris agreement. 

Progress towards more widespread use of gas in the power sector has been slow so far. Recent data suggest German power companies used a mix of coal and renewables for incremental power generation this winter rather than gas. However, there were...