Deutsche Braunkohlen-Industrie-Verein (DEBRIV)

German lignite will continue to make an important contribution to maintaining a secure, economical and sustainable energy supply, the chair of the board of German Lignite Association (DEBRIV), Helmar Rendez, explained at this year’s lignite convention in Cologne/Germany. The German lignite industry calls for planning security and political reliability up to the end date for coal use proposed by the commission for growth, structural change and employment. By the end of 2038 the viability of the industry and the mining districts must be preserved, says Rendez. Compared with the current district planning, the commission’s recommendations represent a significant reduction, resulting in major structural adjustments in the regions and serious disruptions to the companies’ activities and plans.

Rendez appealed to all those responsible, particularly in economic, energy and environmental policy, not to underestimate the risks of undesirable developments. The fourth largest national economy equally needs safety, cost effectiveness and environmental protection in its energy supply. A reliable power supply without interruptions 365 days a year needs reliable generation capacity such as lignite has been offering for decades. Despite high and increasing supply, the guaranteed power supply from photovoltaics and wind is still between zero and 1 % of the demand. Moreover, it is unlikely that storage capacities for a 14-day cold period of little sunlight and no wind can be developed and made available within the next ten years. By 2023, however, it can be expected that domestic power generation capacities will no longer be sufficient to cover high network loads.

“As long as we use lignite, we will have a dampening effect on electricity prices,” explains Rendez on the economic importance of generating power from lignite. Particularly in an increasingly difficult economic environment, the appreciation of lignite’s contribution will rise again, Rendez adds.

With regard to climate policy, German lignite has already “delivered” according to the chair of the DEBRIV board. Since 1990, CO₂ emissions from lignite have decreased by approximately 50 %. Even in the future, coal-based power generation will remain “100 % compatible with European climate protection goals”.

The next step is to implement the recommendations of the commission for growth, structural change and employment on a secure political foundation with regard to energy and the environment. According to the chair of the DEBRIV board of executives, the commission’s proposal to forgo new open-pit mines for energy use does not extend to existing plans as part of the states’ landmark decisions or lignite plans, and ongoing or planned relocations must also be carried out. Under no circumstances may the commission’s recommendations be undermined by new regulatory interventions regarding energy and the environment. Premature decommissioning must be compensated for appropriately by negotiation; this also applies to open-pit mines. To safeguard a secure and cost-effective energy supply, DEBRIV considers realistic revision clauses and transparent reviews of decisions indispensable. To develop sustainable prospects for the regions, active mining as an industrial docking site is vital.

Domestic lignite production was 2.9 % lower in 2018 than in 2017. A total of 166.3 Mt of raw lignite was mined. Production in the Rhineland decreased by 5.4 % to 86.3 Mt. Production in Lusatia fell by 0.8 % to 60.7 Mt. By contrast, the central German mining area recorded an increase in production of 2.2 % to 19.2 Mt. The changes are largely in line with developments in the supplies to power stations. Lignite power generation amounted to 145.5 bn kWh, 2.9 % less than in 2017 and the sixth consecutive year of decline. The number of employees in the German lignite industry decreased slightly by 0.2 % to 20,851.

In the first quarter of 2019, lignite production and supply to power stations was nearly 18 % lower than in the same period of the previous year. Therefore, approximately 7 Mt less CO₂ was emitted. This development is mainly due to three factors: The transfer of additional power station units to the emergency pool of reserve power, a significantly increased supply of wind energy and the effects of the reduced production caused by stopping the clearing of Hambach Forest. (DEBRIV/Si.)

The recommendation from the Commission for Growth, Structural Change and Employment to shut down half of the lignite power station capacity by 2030 and to completely end electricity generation with domestic lignite by 2038 will prematurely take away an important source of energy from Germany as an industrial centre. It will also penetrate deep into the social fabric and value creation of the lignite mining areas. The recommendation would result in Germany ending electricity generation from coal around ten years earlier than planned in the regions. The German Lignite Industry Association (DEBRIV) in Berlin/Germany is appealing to the federal government to review, with the participation of all those affected, the present recommendations from the perspective of reliably supplying Germany with energy.

According to DEBRIV, the commission is intervening excessively in regional plans. Many technically well-founded, economically reasonable compromises that would benefit the regions as put forward by industry, unions and federal states have not been adopted. Even without these rulings, electricity generation from lignite would still end in Germany by 2050 at the latest according to company plans. “We should seriously reconsider prematurely sacrificing a competitive branch of industry for the political objective of climate protection, especially given the fact that this branch of industry is responsible for less than 0.5 % of global CO₂ emissions and its sacrifice would therefore actually contribute very little towards climate protection,” explained Managing Director of DEBRIV Thorsten Diercks in Berlin after the commission’s recommendations were published.

More detailed evaluation of the rulings will only be possible after deeper analysis. DEBRIV would like to thank representatives of economy, the unions and the regions for bringing their expertise on energy economy to the commission’s work with technical feedback specific to the regions. (DEBRIV/Si.)

In 2018, lignite production in the Rhineland, Lusatia and central Germany decreased by a total of 3 % to around 166 Mt. According to preliminary calculations by the German Lignite Association (DEBRIV), Berlin/Germany, this decrease in production and use has reduced CO₂ by around 5 Mt. Lignite therefore made a quantitatively significant contribution to reducing national CO₂ emissions in 2018.

This drop in CO₂ emissions from lignite was in large part due to the transfer of further power station units to the emergency pool of reserve power. The Buschhaus and Frimmersdorf power stations, with a total of 900 MW, transferred to the emergency pool of reserve power as early as 2016 and 2017, while two units of the Niederaußem power station in the Rhineland – just under 600 MW – and one unit of the Jänschwalde power station in Lusatia (465 MW) were taken off grid on 1st October 2018. Two further plants will follow in 2019. With the transfer of a total of 2,730 MW net output to the emergency pool of reserve power, the use of lignite to generate electricity in Germany will decrease by around 13 % by 2020. CO₂ emissions from lignite-based electricity generation will therefore be reduced by around 19 Mt by 2020.

“The reduction in CO₂ emissions called for by climate policy does, however, come with risks and disadvantages, which were particularly brought to light last year,” explained Managing Director of DEBRIV Thorsten Diercks. During last summer’s long heat wave and drought, lignite power stations made a solid and reliable contribution to safeguarding the power supply. The electricity that could be generated from wind energy was severely limited during summer due to the weather and the extreme heat meant that the output of PV systems was also lower. Power stations that take their cooling water from surface water had to significantly downscale their capacities and low water levels in the rivers impeded the fuel supply to various plants. Since lignite power stations are supplied with fuel locally and are cooled with drainage water from mining operations, their operation was at no point jeopardised or restricted. In 2018, it was not only in Germany that the operation of these lignite power stations strengthened the reliability of supply. In several neighbouring countries too, planned or unplanned downtimes in electricity generation could be covered by imports of German electricity generated from lignite.

According to DEBRIV, the particular developments of last year clearly show that the generation of electricity from lignite is of huge relevance when it comes to securing German and European electricity supply. The premature or overly hasty national withdrawal from the generation of electricity from lignite would jeopardise the reliability of supply in Germany and Europe, while the necessary expansion of the grid has yet to take place and it is still not possible to store sufficient power reserves.

DEBRIV anticipates further reductions in the generation of electricity from domestic lignite in the coming years. This development follows the stipulations of the European Emissions Trading Scheme, whereby the number of chargeable emissions allowances is declining year on year. According to company plans, the generation of electricity from lignite in Germany will end in the 2040s. A premature withdrawal would inevitably result in severe structural interruptions with massive losses in terms of employment and value creation in the mining regions, warns DEBRIV. (DEBRIV/Si.)

Helmar Rendez, Chairman of the Board at LEAG, is the new Chairman of the German Lignite Association (DEBRIV), Berlin/Germany. He was elected to his new office at the general meeting at this year‘s lignite convention. The new Deputy Chairman was declared to be Lars Kulik, Member of the Board of Management at RWE Power AG.

The extensive withdrawal from electricity generation using lignite in Germany is possible without the need for any compulsory redundancies. This was the assertion made by the Institute for Applied Ecology after carrying out an analysis on behalf of the Federal Environment Agency, which was subsequently quoted in the media. The German Lignite Industry Association (DEBRIV), Bergheim/Germany, has made a clear statement on this:

“This analysis is arbitrarily based on incorrect assumptions, e. g., regarding HR development in energy companies. Above all, however, by only considering employees in the lignite industry, it fails to take into account the importance of the industrial-political and national economic dimension of a rapid phase-out of coal,” reports Helmar Rendez, Chairman of the DEBRIV. “A subject of huge societal relevance has been deliberately played down here. By distancing itself from reality, the study by the Institute for Applied Ecology cannot be used as a sound basis for discussing the future of mining districts.”

The significance of the lignite industry has been systematically underestimated by the authors of the study; in the Rhineland as the guarantee of competitive industrial electricity prices, in the Central German mining district for its links with the chemical industry and in Lusatia as the central industrial anchor for the entire region’s economy. From the point of view of the DEBRIV Chairman, the effects of a premature phase-out of coal on other companies and areas of the economy have not, therefore, been considered to the extent necessary in the analysis by the Institute for Applied Ecology.

The downscaling of coal capacities as called for in the analysis by the Institute for Applied Ecology would in fact result in a considerable increase in the price of electricity. The effects this would have on energy- and labour-intensive industries would be serious. Tens of thousands of people are employed by suppliers and partner companies, with hundreds of thousands in the nationwide energy-intensive industry. Take North Rhine-Westphalia, e. g.: A recent study by the chambers of industry and commerce in Aachen, Cologne and the Central Rhine Region found that 93,000 people are employed in energy-intensive production companies throughout the entire economic area of the largest German state. And in North Rhine-Westphalia, up to two further jobs can depend on each of these positions.

Every year, companies in the German lignite industry award contracts amounting to several billions of euros to other companies for the maintenance and modernisation of their mining operations and power stations and the associated high environmental standards. Without these contracts, many jobs at partner companies and suppliers would be under serious threat.

Another inaccurate assumption by the Institute for Applied Ecology is that there will be a drop in recruitment in the coming year. “That is simply not business practice,” clarifies Rendez. “Continuous training and the transfer of knowledge to young employees is essential for every commercial enterprise. The same obviously applies to the lignite industry. A drop in recruitment in the region would also mean the loss of hundreds of traineeships for qualified professions. That would severely impede the positive structural development in the regions and force young people to move away.” (DEBRIV/Si.)

“Without the solid contribution made by lignite during this year’s particularly long heat wave and drought, the electricity supply in Germany would have been under serious threat”, explains Helmar Rendez, Chairman of the Board of the German Lignite Industry Association (DEBRIV) in Bergheim, in his provisional appraisal of the energy supply during the summer weather conditions. On account of the weather, the generation of electricity from wind energy was severely restricted, photovoltaic systems were able to provide less power and power stations, which take their cooling water from surface water, had to significantly downscale their capacities.

When it comes to the supply of fuel and cooling water, German lignite power stations, on the other hand, are not affected by long-lasting heat waves. They are supplied according to requirements, usually via their own rail or transport systems, from the nearby mining operations in the Rhine, Central German and Lusatia mining districts. Following electricity generation, the process steam is usually condensed by cooling towers, which use the mine water extracted by the mining operations. “With this in mind, it’s no wonder that most lignite power stations are currently feeding their full power into the grid in order to safely and reliably supply the economy and the population with electricity”, says Rendez.

According to DEBRIV, it is essential that a broad mix of different energy sources and technologies are used to generate electricity during long periods of low wind and heat waves. Extreme weather can and will occur in future, including severe cold and low wind. “A hasty phase-out of coal as a means of generating electricity would put the electricity supply at serious risk”, explains the Chairman of the Board of DEBRIV. (DEBRIV/Si.)

“Domestic lignite will still be essential for securing Germany’s energy supply for decades yet,” emphasized Helmar Rendez, the new Executive Board Member of the German Federal Association for Lignite Production (DEBRIV) at this year’s Braunkohlentag conference in Halle/Saale. Rendez indicated that the early shut-down of more lignite power stations would have a serious impact on service and supply companies and whole economic regions, since: “A change in fuel demands of power stations changes the face of strip mining operations and has effects on the planning and approval conditions in mining districts, with far-reaching consequences for communities and regions.” It is therefore beyond question that the politically motivated structural changes in the mining districts will have a better chance of success if planned in cooperation with the lignite companies, rather than without the involvement of the people and companies who have lived here for many decades and who work in the lignite industry.

Rendez also emphasized that the federal government must focus more intensely on the energy economy triad of reliable supply, economic viability, and environmental protection in their decision-making on energy policy. He also called for their assurance that structural interruptions in the regions will be avoided.

So far, according to the DEBRIV, it is utterly unclear how the political energy transition targets of reducing national greenhouse gas emissions by 55 % before 2030 compared with 1990, and for renewable energy sources to make up 65 % of the gross electricity consumption can actually be reconciled with the requirements of a reliable and economically viable electricity supply. In their planned impact assessment, the federal government commission for “growth, structural change and employment” must also propose solutions to deal with the discussed measures. Rendez: “We know that lignite reliably supplies electricity and heat, while the renewable energy sources are not yet in a position to dependably supply consumers with continuous electricity or to secure the reliability and stability of the mains network, and will not be for the foreseeable future.”

“The four German states of North Rhine-Westphalia, Brandenburg, Saxony, and Saxony-Anhalt, in which lignite is currently extracted, demonstrate how to design a reliable energy policy,” emphasizes Rendez. “In the coming weeks, voices of reason are needed more than ever,” he explained, with a view to the government commission for growth, structural change and employment, and the realignment of the national energy and climate policy. (DEBRIV/Si.)

Helmar Rendez, Chairman of the Board at LEAG, is the new Chairman of the German Lignite Association (DEBRIV), Berlin/Germany. He was elected to his new office at the general meeting at this year‘s lignite convention. The new Deputy Chairman was declared to be Lars Kulik, Member of the Board of Management at RWE Power AG.

“Flawed, superficial and solely ideologically motivated” is how the DEBRIV association, Berlin/Germany, sees the legal report on the energy transition submitted by the Agora Energiewende thinktank. One particularly problematic aspect of the report is the ease with which Agora skates around constitutionally protected legal positions. In its assessment, DEBRIV lists a number of concrete legal flaws in the report, which refers to itself as an analysis of the German Federal Constitutional Court (BVerfG) judgement of 6th December 2016 on the 13th amendment to the German Atomic Energy Act („nuclear phase-out“):

According to this judgement, no constitutional legal provision exists whereby an investment that is written off or amortised loses its property protection. Property protection continues beyond this period as well. In contrast to Agora‘s claim, it would be necessary to examine – for each power station unit to be decommissioned – whether statutory termination of the power station‘s lifetime is warranted in comparison to other units. In addition, surface mining is protected by article 14 German Basic Law (GG) in the same way that power stations are. The statement to the contrary issued by Agora is not legally tenable.

Furthermore, their brief assessment wholly disregards the direct social and economic ramifications that a transition from coal would bring for the affected regions as well as all of Germany as an industrial centre. These aspects are nevertheless crucially important when it comes to interpreting the German constitution. According to DEBRIV, „it is regrettable that an attempt has been made to influence political opinion by way of an assessment with this kind of legal vulnerability.“

The fact of the matter is that lignite power stations in Germany operate on the basis of indefinite, legally compliant permits corresponding to the state of the art. There is no legal basis for the withdrawal of operating permits. Making a success of the German energy transition requires an emphasis on organising cooperation between conventional and renewable energy sources in such a way that equal consideration is given to climate protection, reliability of supply and economic efficiency.

Unilateral measures, like a politically driven departure from lignites, will not help climate protection efforts. Ultimately, German lignite is also subject to the EU Emissions Trading System (ETS), meaning that moving away from coal at the national level would not impact overall emissions in Europe because unclaimed emissions certificates could be used by other issuers elsewhere in Europe. (DEBRIV/Si.)

Last year, domestic lignite once again supplied just under a quarter of the electricity in Germany and therefore made a significant contribution to supply reliability. Despite exhausting all energy saving options, numerous studies show that the electricity demand will increase noticeably over the next three decades, from 500 TWh at present to up to 800 TWh. The future of energy is electric.

“In 2030, just over half of electricity consumption in Germany will have to be covered by the variable and reliable capacity of conventional power stations and, during periods of little sunlight and no wind, the proportion will be even greater,” explained the Chairman of the Executive Board of the German Lignite Association (DEBRIV), Matthias Hartung, at this year’s lignite convention in Cologne/Germany (Figure 1). Lignite is an indispensable partner when it comes to meeting this demand, because it is a readily available domestic resource and does not have to be imported from far-flung or unstable regions. It provides domestic added value, efficient regional structures and employment.

Germany can use lignite to achieve its ambitious climate targets and to guarantee a reliable power supply. “We will participate intensively in the forthcoming debates on the implementation of the climate protection plan and make the case that the developments desired by the mining states will be taken into account in the lignite regions by means of a balanced weighting of the diverse aspects of domestic energy production. We are fulfilling our significant CO₂ reduction contributions as part of the European Emissions Trading Scheme,” explained Hartung. The transfer of older power station units to the emergency pool of reserve power is a first step towards ensuring a reduction in CO₂ emissions from lignite power stations of around 15 %. Overall lignite use is developing in line with the national and European CO₂ reduction targets.

Hartung explained that CO₂ emissions from lignite in the Rhineland will fall by 40 to 50 % by 2030, partly due to the discontinuation of the Inden open-pit mine. Other contributions are made by increasing efficiency and changing the capacity utilisation of existing lignite power stations, the plans for open-pit mining in Lusatia and in the Central German lignite mining district, which have also provided considerable reductions in CO₂. The Chairman of the DEBRIV Executive Board stresses that he is unaware of any other sector of the national economy declaring CO₂ reduction targets of this scale. Instead of continually setting new national climate goals, DEBRIV advocates meaningful use and further development of the functioning European Emissions Trading Scheme (ETS). He adds that the ETS is an effective, cost-efficient instrument for climate protection with equitable burden sharing. National measures and goals are allegedly largely ineffective by comparison and have damaged the German economy. (DEBRIV/Si.)