The market is driving the coal phase-out in Germany

Capacity has already been reduced by decommissioning power plants to the extent envisaged by the legislator for 2027.

This year, for the first time, the state will not have to intervene and decide on the shutdown of power plants in order to limit production in accordance with the maximum volume agreed in the Coal Phase-out Act.

The reason for this is the increasingly poor utilization of coal-fired power plants due to the expansion of renewables. Older plants, in particular, are no longer profitable. 

In the first half of 2024, the share of coal in electricity generation in Germany was just under 20%. In 2015, it was still nearly half, and five years ago, it was still one-third.

Sources and further reading:

https://montelnews.com/news/6a8da213-7761-4c4a-a718-4effb41fd969/german-capacity-market-may-dampen-coal-needs-before-2038-exit

https://www.reuters.com/business/environment/german-coal-power-phase-out-likely-before-2038-due-economics-says-climate-envoy-2024-06-24/