German Coal Exit to Trigger Price Swings in Energy Markets
- As much as 30% of lignite and hard coal will shut by 2022: BI
- Coal commission due to report key findings on Feb. 1
A barge transporting coal sails on the Mittleland canal in Wolfsburg, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Germany’s plan to shut down dozens of power plants burning coal over the next couple of decades is uniting traders and analysts on one thing: price swings in markets from power to natural gas and carbon allowances are poised to increase.
Renewable energy last year overtook the dirtiest fossil fuel as Germany’s biggest source of electricity. Closing coal stations that are designed to provide stable output from the grid, coupled with the continued expansion of solar and wind plants, will give volatile green sources an even larger share of total output in the future.