German State Awards €317 Million To Loss-Making Coal Plants

Ember's analysis of Germany's first hard coal phase-out auction reveals that the state awarded €317 million to 11 plants, many of which were already economically unviable. The report finds that 93% of the German hard coal fleet has been running at a loss since late 2018, collectively losing over €1 billion. Ember argues that the current phase-out model is inefficient, as it may lead to the closure of newer, more efficient plants while compensating older units that would have closed due to market forces regardless of subsidies.

• The first national coal phase-out auction awarded nearly €317 million in compensation to 11 hard coal plants for retirement in 2021, despite many being unprofitable. An analysis of the seven largest awarded plants (over 300MW) shows they lost more than €200 million over the previous two years.
• Hard coal power generation in Germany is largely no longer economically viable; 93% of the fleet has operated at a loss since the end of 2018, with total collective losses exceeding €1 billion. Annual net losses rose from €124 million in 2018 to €430 million in 2019, and reached €489 million between January and October 2020.
• The utilization of German hard coal plants is declining rapidly, with the average load factor dropping from 40% in 2018 to 29% in 2019, and further down to 20% between January and October 2020.
• The German coal phase-out strategy is criticized for being slow and expensive, with a 2038 target that exceeds the 2030 timeline needed to align with the Paris Agreement and EU commitments. Ember suggests that by 2030, Germany will remain the EU's top power sector polluter, accounting for approximately 30% of the EU's power sector emissions.
• The auction process may inadvertently accelerate the closure of younger, more efficient plants over older ones, which contradicts the goals of the Kohleausstiegsgesetz (KAG). Some successful bidders, such as Vattenfall's Moorburg units commissioned in 2015, indicate that even efficient plants are now unviable.

APA

Ember (2020). German State Awards €317 Million To Loss-Making Coal Plants. https://ember-energy.org/latest-insights/german-state-awards-e317-million-to-loss-making-coal-plants

Chicago

Ember. German State Awards €317 Million To Loss-Making Coal Plants. 2020. https://ember-energy.org/latest-insights/german-state-awards-e317-million-to-loss-making-coal-plants.

Wikipedia

{{cite report |author=Ember |title=German State Awards €317 Million To Loss-Making Coal Plants |date=8 December 2020 |url=https://ember-energy.org/latest-insights/german-state-awards-e317-million-to-loss-making-coal-plants |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2020german, author = {{Ember}}, title = {{German State Awards €317 Million To Loss-Making Coal Plants}}, institution = {Ember}, year = {2020}, month = dec, url = {https://ember-energy.org/latest-insights/german-state-awards-e317-million-to-loss-making-coal-plants}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }