DATA & FIGURES
The European Union's emissions trading system has led to rising EU carbon allowance prices, which could push Germany's coal exit to 2032, six years ahead of the 2038 deadline. The German government aims to source 100% of the national energy mix from renewables by 2035.
THE SCENARIO
Germany's energy transition is taking place amidst a backdrop of global energy market volatility, with the country trying to balance energy security with climate goals. The phase-out of coal is a critical component of this transition, with geothermal energy emerging as a potential alternative.
DIRECT QUOTE
"Our electricity market models indicate that coal will be phased out faster than envisaged under the coal exit agreement, meaning the market is outpacing the schedule. This is due to comparatively low gas prices until recently, and higher ETS allowance prices." — Hauke Hermann, Senior Researcher for Energy and Climate Action, Institute for Applied Ecology
BBN INSIGHT
The potential for geothermal energy to play a role in Germany's energy transition is significant. Not only can it provide a cleaner alternative to coal, but it can also offer a just transition for communities dependent on coal. The Positive Side of this development is the potential for geothermal energy to create new jobs and stimulate local economies. However, the Negative Side is the potential for high upfront costs and the need for significant investment in infrastructure.