Coal phaseout: once again, no coal-fired operation ban required
Year of issue 2026
Date of issue 2026.09.01
The Bundesnetzagentur is not issuing any coal-fired operation bans this year under the Act to Reduce and End Coal-Fired Power Generation (KVBG). The number of coal-fired plants that have already left the market as of 1 September 2026 significantly surpasses the legally defined target level for 2029. An additional ban is not necessary.
For the third time since the beginning of the coal phaseout through the KVBG, no new ban is required to meet the legal requirements. The target level for 2029 refers to the net rated capacity still permissible from hard coal and lignite power stations in the respective year. The already-planned phasing out of numerous lignite power stations means that this year’s target will be achieved solely by means of natural exit from the market.
Security of supply remains safeguarded
The transmission system operators (TSOs) assess each power plant closure to see if a plant is essential for the system. Power plants that remain essential for the system despite being decommissioned can be placed in the grid reserve. There they are on standby in critical situations to ensure the stability of the power grid. This means that security of supply is safeguarded at all times.
Further details about the statutory reduction process and the current state of the coal phaseout are available at www.bundesnetzagentur.de/Kohleausstieg.
Background
With effect from 2024, coal-fired operation bans are issued by the Bundesnetzagentur without an auction and without any compensation. As from 2024, a ban becomes effective 30 months after the date in September for issuing bans. The aim is to gradually reduce and eventually end coal-fired electricity generation beyond 2027.
The order of the bans is based on the age of the plants. Older plants are banned first, followed by newer ones.
Operators of hard coal-fired power plants and small lignite-fired power plants will no longer receive financial compensation in future for not burning coal in their facilities.
In seven auction rounds held up to 2023 the Bundesnetzagentur put up a total of 10.9 gigawatts (GW) of net rated capacity for auction. Successful bids were placed by 41 facilities for around 10.7 GW. The Bundesnetzagentur issued a coal-fired operation ban for three other facilities with a net rated capacity of 1.4 GW.