The German power utility RWE forecasts that an accelerated coal exit process by 2040 would result in higher costs for power consumers and a €25/MWh increase in power prices, which is €9/MWh more (20%) than in the standard case (a scenario without the accelerated coal phase-out). The total amount of these additional costs is estimated at €29bn for the 2020-2040 period, which is €4bn more than in the reference scenario.
Meanwhile, the energy industry association Bundesverband der Energie- und Wasserwirtschaft (BDEW) estimates that the country will not be in position to rely on neighbouring European countries in case of tighter power capacity due to the coal phase-out process. The rising gap potential between Germany's requirements and its shrinking conventional capacity could cause supply disruptions in the early 2020s. In order to solve this problem, BDEW proposes the development of additional gas-fired power generation and energy storage installations.
Germany plans to phase-out its coal-fired capacity by 2030 along with nuclear power by 2022 in order to meet its climate goals. The government agreed to phase-out coal in early 2018 (Kohleausstieg) and a special purpose commission gathered in June 2018.
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