German coal power phase-out likely before 2038 due to economics, says climate envoy

By Susanna Twidale

LONDON (Reuters) - Germany is likely to phase out its coal-fired power stations before the legally mandated date of 2038 due to worsening economics for coal plants, the country's climate envoy said on Monday.

Germany reached a 2.6 billion euro ($2.8 billion) deal with energy firm RWE in the western state of North Rhine-Westphalia in 2022 for the company to close its coal plants by 2030, signalling Berlin's intention to try to move more quickly.

However, it has not struck a similar deal with fellow generator LEAG, which currently supplies 7 gigawatts of lignite-fired power or around 10% of the total in Germany.

“If you look at the modelling now and the calculations it looks like it (the phase out) will likely occur before 2038 just due to the economic viability,” Jennifer Morgan told Reuters in an interview on the sidelines of an industry event in London.

Leaders of the Group of Seven developed countries this month pledged to phase out existing unabated coal power generation in energy systems during the first half of the 2030s.

But the final document also allowed an alternative commitment of phasing out coal-fired plants "in a timeline consistent with keeping a limit of a 1.5 degrees Celsius temperature rise within reach, in line with countries' net-zero pathways".

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(Reporting by Susanna Twidale; Editing by Mark Potter)