Our Privacy Statement & Cookie Policy

By continuing to browse our site you agree to our use of cookies, revised Privacy Policy and Terms of Use. You can change your cookie settings through your browser.

I agree

Can Germany put coal in the past as world energy crisis bites?

Peter Oliver in Spremberg

03:02

Germany's coal-fired power stations were meant to be part of the country's past. But near Spremberg in eastern Germany, the towering stacks of the Schwarze Pumpe plant are once again at the heart of a renewed debate over how Europe's biggest economy keeps the lights on.

The conflict in the Middle East, rising global oil prices and renewed fears over supply disruptions have put fresh pressure on Berlin's ambitious energy transition strategy, known as the Energiewende.

German Chancellor Friedrich Merz said the latest geopolitical shock is already being felt at home, after concerns over the Strait of Hormuz pushed global oil prices above $100 a barrel.

"The conflict, this war, is the real cause of the problems we are also facing in our own country," Merz said.

The cooling tower of the Schwarze Pumpe coal-fired power plant, August 2025. /Florian Gaertner/picture-alliance/dpa/AP Images
The cooling tower of the Schwarze Pumpe coal-fired power plant, August 2025. /Florian Gaertner/picture-alliance/dpa/AP Images

The cooling tower of the Schwarze Pumpe coal-fired power plant, August 2025. /Florian Gaertner/picture-alliance/dpa/AP Images

Germany has some of Europe's most ambitious climate goals. The government is targeting 80 percent renewable electricity generation by 2030, a complete coal exit by 2038, and climate neutrality by 2045.

Yet coal remains a significant part of the country's electricity mix.

According to data from Fraunhofer ISE and Germany's Federal Network Agency (Bundesnetzagentur), renewables now account for around 57 percent of electricity generation, while coal still provides 21 percent, gas 17 percent, and other sources 5 percent.

That leaves Berlin facing a difficult balancing act between short-term energy security and long-term climate commitments.

For now, the debate is less about reversing the transition than about how to provide a reliable buffer during a new global shock.

Critics of the government argue that the current strategy is driving up costs for both households and industry.

Stefan Kotre, an energy spokesperson for the opposition AfD, said rising carbon costs and higher energy prices are hurting German manufacturers, particularly energy-intensive sectors.

German Chancellor Friedrich Merz said the latest geopolitical shock is already being felt at home. /Tobias Schwarz/AFP
German Chancellor Friedrich Merz said the latest geopolitical shock is already being felt at home. /Tobias Schwarz/AFP

German Chancellor Friedrich Merz said the latest geopolitical shock is already being felt at home. /Tobias Schwarz/AFP

However, analysts say the bigger issue is long-term certainty.

Political analyst Uli Brückner says Germany's transition strategy had previously been built around clear deadlines and transparent targets.

"If you now slow down the energy transition and you play with deadlines and you make exceptions, then nobody really knows how to refinance a long-term investment," he said.

That uncertainty could have consequences far beyond the current crisis.

Germany's climate goals rely not only on political ambition, but also on sustained investment in renewables, new grid infrastructure and storage capacity.

Even a temporary renewed reliance on coal as an emergency buffer risks adding further uncertainty to the investment needed to deliver the transition.

For Berlin, the challenge is whether it can protect energy security in the short term without slowing the transition it has spent years trying to build.

Search Trends