Germany No Longer Prioritizing National Coal Reserve, Sources Say – Reuters

By Markus Wacket

BERLIN – Germany is shifting away from a proposed strategic national coal reserve, as the country reassesses its energy contingency plans in light of the ongoing ramifications from the war in Ukraine. This change in direction comes from discussions between government officials and industry stakeholders.

The initial proposal was put forth by Economy Minister Robert Habeck shortly after the invasion on February 24, but sources reveal that it has lost priority within the ministry following recent consultations with utility companies.

Reports suggest that Germany, already the largest coal importer in the European Union, is likely to find sufficient coal in the global market, even amid the EU’s decision to impose a ban on coal imports from Russia. Concerns have been raised that creating a national reserve could exacerbate already high energy prices.

In past years, over 50% of Germany’s coal supply relied on Russian imports; however, this proportion has now fallen to below 10% as the nation works to reduce its energy dependence on Moscow. Despite this reduction, German power plants have not faced significant challenges thus far.

An internal government document from late April questioned the necessity of the proposed coal reserve. It indicated that the Economy Ministry needed to reassess the feasibility of mandatory hard coal stockpiling in light of the coal embargo.

Originally, the plan envisioned reserves sufficient for up to 90 days. Currently, Germany does not produce black coal and relied on imports of approximately 32 million tons last year.