Germany agrees lignite phase-out timetable, compensation

London — Germany's government and lignite mining state leaders have agreed a timetable for the closure of 18 GW of lignite capacity over the next two decades, ministers said Thursday.

In a first wave, 2.8 GW are to be shut in RWE's mining area linked to the Hambach mine, with a first 300 MW unit closing by the end of this year and three more 300 MW units by end-2021.

As proposed by the coal commission last January, the closures will ensure that the Hambach forest is preserved, energy minister Peter Altmaier said.

After 2022, RWE is set to close another 300 MW unit in January 2025 and April 2029 with two 600 MW units to close end-2029 leaving 3 GW online beyond 2030 in the Rhenisch mining area operated by RWE.

Mining areas in East Germany are to be spared in the first wave, with closures only planned for end-2025 and end-2027 as two 500 MW units at Jaenschwalde operated by LEAG (EPH) to move into a reserve mechanism.

Another 1 GW at Jaenschwalde is set to close in 2028, while 1 GW at Boxberg is to close end-2029.

This leaves units at Schkopau, Lippendorf, Schwarze Pumpe and Boxdorf operating beyond 2030.

Operators are expected to receive over Eur4 billion in compensation for the closures, finance minister Olaf Scholz said.

The coal exit law is set to pass cabinet on January 29, Altmaier said.

RWE has scheduled a press conference for 2 pm local time (1300 GMT).

GERMAN LIGNITE CLOSURE TIMETABLE

Source: BMWi (post-2030 closures to be reviewed 2026/29 for possible 2035 end)