Germany to open tenders to phase out coal-based capacity

Germany’s energy regulator is set to launch a tender to allow coal-fired power plant operators to compete for financial compensation to reduce 4 GW of generation capacity in line with the country’s goal to exit coal by 2038.

The German regulator has set September 1, 2020 as bidding date for a first auction. It is first such auction in the country that is aimed at reducing carbon emissions. A series of tenders are planned to be conducted between 2020 and 2027 to reduce coal-based electricity generation in hard coal and small-scale lignite plants. The maximum price allowed in the first round is €165,000 per MW for coal-fired capacity. In 2019, a total 20,000 MW of coal-based capacity contributed to 9 per cent of the Germany’s total generation.


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