The role of lignite production against the background of Germany’s coal phase out

The role of lignite production against the background of Germany’s coal phase out

RWE Power AG has asked Frontier, in co-operation with Economics Trend Research and Fraunhofer IMWS, to investigate the energy-economic necessity of lignite production and use in the Rhenish mining area.

After a compromise on the coal phase-out in Germany was reached based on the recommendations by the Commission for Growth, Structure and Employment (KWSB) in January 2019, the course for the phase-out was set. In our report we analyse the necessity of lignite use against the background of the energy policy goals (value for money, supply security, environmental/climate compatibility). Our analysis finds that lignite will continue to contribute substantially to energy supply, but will also add value and provide employment in the Rhine area and in Germany as a whole until its phase-out planned for 2038.

The agreement between the Federal Government and the Federal States in Germany reached in January 2020 sets out a more detailed plan for the phase-out of lignite power plants. In a second analysis, we look at electricity generation volumes, lignite mining needs as well as the effects of the value added to the region and the effect on employment.

Frontier regularly advises public sector and private clients on questions around coal phase-out.

For further information please contact [email protected] or call +44 (0) 20 7031 7000