In a significant policy pivot, Berlin is re-evaluating its reliance on coal-fired electricity generation, with British energy strategy increasingly cited as a viable template. The shift, reported by multiple government sources, marks a departure from decades of German energy orthodoxy and underscores the deepening crisis in European power markets.
The German Ministry for Economic Affairs and Climate Action has quietly commissioned a review of coal plant retirements originally scheduled for 2030. This u-turn, driven by fears of winter supply shortages and the slow rollout of renewables, signals a recognition that the Energiewende (energy transition) is struggling to deliver baseload power at scale. Last week, grid operator Tennet warned of potential blackouts if coal plants continue to close without sufficient backup from gas, hydrogen, or storage.
Enter the British model: a mix of market mechanisms, strategic gas reserves, and a robust nuclear fleet. The UK’s capacity market, which pays generators to stand by during peak demand, has been particularly admired. Germany, by contrast, relied heavily on Russian gas and a rapid phase-out of nuclear after 2011. Now, with gas supplies constrained and renewables intermittent, coal remains the only dispatchable source capable of bridging the gap.
Data from the Fraunhofer Institute shows German coal generation rose 8% in the first quarter of 2025 compared to 2024, reversing a decade-long decline. This is despite record investments in wind and solar. The physics is unforgiving. When the wind does not blow and the sun does not shine, something must spin the turbines. Batteries can handle minutes or hours, not days, of calm.
The British approach, refined after the 2021 energy crisis, incorporates three pillars: first, a strategic reserve of coal plants kept on standby (the UK’s remaining three coal units are due to close in October, but policy makers are now reconsidering their retirement). Second, a carbon price floor that makes gas cheaper than coal per unit of CO2, but still provides a backstop. Third, a massive expansion of offshore wind, backed by contracts for difference that stabilise revenue for developers.
Germany’s new review is exploring a similar framework. Sources suggest Berlin is considering a “coal reserve” model where plants are mothballed but can be reactivated within 72 hours, as the UK did during the 2022 gas crisis. This would require amending the Coal Phase-Out Act and compensating utilities like RWE and LEAG for maintaining assets that might never run.
“The British have demonstrated that you can keep coal as an insurance policy without undermining climate targets,” says Dr. Anja Müller, an energy economist at the DIW Berlin. “The emissions from a reserve plant running 200 hours a year are insignificant compared to the avoided economic damage of a blackout.”
But the political cost is high. The Green Party, a junior coalition partner in Chancellor Scholz’s government, has already signalled fierce opposition. Critics argue that extending coal undermines Germany’s credibility as a climate leader, given that its per capita CO2 emissions are still nearly double the UK’s (8.1 tonnes vs 4.6 tonnes in 2024, according to Global Carbon Data).
Nevertheless, the physics is unmoved. Germany shut its last nuclear reactors in 2023, removing 30 GW of zero-carbon baseload. Renewables have added capacity but not reliability: in January 2025, a 10-day “Dunkelflaute” (dark doldrums) with low wind and solar output forced German grid operators to import French nuclear power and burn coal at near-record rates. The UK, with its interconnectors and gas storage, weathered the same period with less strain.
The irony is palpable. Britain, long mocked for its chaotic energy policy, is now the model. Germany, the poster child of green transition, is falling back on the dirtiest fuel. This is the uncomfortable reality of an energy system in flux: idealism must be tempered with the laws of thermodynamics. Coal may be the enemy, but cold is the tyrant.
As the German review proceeds, the UK government is quietly watching. British officials have offered technical assistance through the North Sea Transition Authority and the Energy Systems Catapult. If the deal goes through, it could cement a new axis of pragmatic decarbonisation, one that acknowledges that the path to net zero is not a straight line but a messy, iterative struggle with the physical world.
The only certain thing is that when the lights flicker, ideology gives way to survival. Germany is learning this lesson. Britain mastered it years ago.
