The VDKi calls for a sensible energy revolution – not a sledgehammer approach
The effects of the European elections are also being felt in the energy sector. Institutes, associations and family businesses are complaining about the poor state of the German economy, which is primarily due to high energy prices. Germany is one of the world’s most expensive countries for electricity. Furthermore, Germany has become a net importer of electricity – bad news for the security of domestic supply.
In particular, in light of the special report by the Federal Audit Office on the energy transition, there should be no “business as usual”. “The energy transition is not on track for the electricity supply,” it says. “The Federal Audit Office does not consider the goal of providing the general public with electricity at a reasonable price to be secured”. The auditors criticise the fact that, in particular, onshore wind energy is not being expanded to the extent provided for by law. The Federal Ministry for Economic Affairs and Climate Action (BMWK) is also unable to meet its schedule for secure, controllable back-up capacity with the 2026 power plant strategy (KWS). Furthermore, the expansion of the grid is significantly behind schedule. The Association of Coal Importers (VDKi), Berlin, is therefore calling for an energy transition with common sense and not with a crowbar.
The current concept for the energy transition is hardly affordable. Studies expect investments in the order of 1.2 tn €. That is more than 50,000 € for a four-person household. For the VDKi, one thing is clear: Energy must remain affordable for citizens, otherwise acceptance of the energy transition will be lost.
Controllable energy is needed to ensure a stable supply. That is why the newer fleet of coal-fired power plants should continue to be used in back-up operation. In the opinion of the VDKi, these plants do not contradict the political goal of reducing CO2. This is because these power plants have little impact on the CO2 balance when they are used for shorter periods of time. In addition, the German government is now allowing the use of CCS/CCU, transport and offshore storage in Germany too. For the VDKi, there is no climate policy reason to prevent the use of CCU and CCS in hard coal power plants.
The possible use of green ammonia in hard coal power plants to reduce CO2 should also be taken into account. VDKi Chairman Alexander Bethe: “Our aim should be to act in an open-minded way. This will reduce the costs of the energy transition.” The responsibility for the costs of operating CCU/CCS plants is in competition with the CO2 certificate market and is therefore the responsibility of each company. Therefore, only the companies, not the federal government, should decide on the suitability of CCU/CCS for hard coal power plants.
The VDKi points out that the path ahead of us towards a hydrogen-based energy transition will be a long and extremely expensive one. Furthermore, hydrogen will be far too scarce and expensive to be used in power plants for a long time to come. In addition, hard coal is no more harmful to the climate than other fossil fuels used to generate electricity when the entire supply chain is taken into account. In view of the immense investment costs, the VDKi advises that the principle of “less is often more” should be applied when planning the future energy infrastructure.
The state, as a forward-thinking energy company, seems to be getting bogged down in “climate protection perfection” and driving up costs for everyone. “The German coal market is working,” says Bethe. “Despite the sanctions on Russian coal and the sudden loss of up to 70 % of Russian imports of coke and coal, a stable supply of coal in Germany has been and will continue to be ensured at all times.” This will also be the case in the future. The supply of hard coal is rock solid and stable. Bethe: “For energy security in Germany, it is necessary to continue operating hard coal power plants beyond 2030. Without hard coal, there will be no security of supply in the foreseeable future”.
Hard coal should not be demonised and will continue to be needed for a secure and affordable energy supply for some time to come. CO2 emissions would nevertheless fall. The current import volumes of around 33 Mt/a hard coal as a basic quantity, of which 18 Mt of hard coal for power plants, with more than 8 bn t of coal being mined worldwide, will continue to play a role in ensuring a secure energy supply for some time to come. “Lesser for longer” is the motto. (VDKi/Si.)
