# Germany faces rising electricity costs and emissions

> Live situation record from CLSTR: https://clstr.news/situations/german-debate-over-coal-power-plant-usage
> Updated: 2026-09-05T15:45:00.000Z. Sources: 18. Developments: 4.

The debate over utilizing coal-fired power plants to mitigate high electricity prices has intensified as German households face record costs. Data from Verivox indicates that German consumers pay approximately 35.6 cents per kilowatt-hour, the highest among G20 nations, compared to a G20 average of 16.3 cents. Notably, more than 60 percent of the final price for German consumers consists of taxes, levies, and grid usage costs, while actual energy procurement accounts for less than one-third of the total bill.

In response to these economic pressures, the German Ministry of Economy is examining whether plants currently kept in standby mode could be utilized more frequently. This proposal, supported by members of the Christian Democratic Union (CDU), seeks to provide stability until gas-fired plants are completed, which is expected around 2030 or 2031. However, the plan continues to face technical, economic, and legal challenges, alongside opposition from the Social Democrats (SPD).

As the economic burden persists, the Handelsverband Deutschland (HDE) has called for an immediate reduction in electricity taxes to support consumers and maintain industrial competitiveness. To address long-term energy security, the European Commission has approved a German state aid program worth up to 35 billion euros, scheduled for implementation in 2031, with a mandate that plants transition to climate-neutral hydrogen by 2045.

Recent developments indicate escalating challenges in the energy transition. Household electricity prices have risen significantly, reaching an average of 47.01 cents per kilowatt-hour in 2023. Furthermore, gross electricity production declined from 610 TWh in 2019 to approximately 503 TWh in 2024, making Germany a net importer of electricity. Chancellor Friedrich Merz has acknowledged that the rapid phase-out of nuclear energy, combined with the loss of Russian gas supplies, has contributed to high prices and increased carbon intensity, which reached 344 grams per kilowatt-hour in 2025.

## Claims

- Germany's electricity price is 35.6 cents per kilowatt-hour. (corroborated by 2 sources)
- The German Retail Association (HDE) demands a rapid reduction in electricity tax for all consumers. (corroborated by 2 sources)
- Electricity prices in Italy, the UK, France, and the USA are lower than in Germany. (corroborated by 2 sources)
- The average electricity price in G20 countries is 16.3 cents per kilowatt-hour. (single source)
- Taxes, fees, and grid usage costs account for more than 60 percent of the final electricity price in Germany. (single source)

## Timeline

### 2026-09-05: Germany faces high electricity costs and CO2 emissions amid energy transition

Germany faces high electricity prices and increased CO2 emissions following its energy transition and nuclear phase-out. Chancellor Friedrich Merz cited lost Russian gas and nuclear exits as key drivers.

6 sources. https://clstr.news/cluster/germany-faces-high-electricity-costs-and-co2-emissions-amid-energy-transition

### 2026-09-02: Germany faces highest electricity prices in G20

Germany faces the highest electricity prices in the G20, prompting calls for tax cuts and a 35 billion euro state aid program to ensure energy security and capacity through 2031.

6 sources. https://clstr.news/cluster/germany-considers-increased-coal-power-use-amid-record-electricity-prices

### 2026-08-31: Germany evaluates using coal reserves to lower electricity prices

Germany's Ministry for Economic Affairs is evaluating whether to use reserve coal power plants more frequently to combat high electricity prices, despite technical and legal challenges.

4 sources. https://clstr.news/cluster/germany-examines-using-coal-power-reserves-to-lower-electricity-prices

### 2026-08-28: Germany coal power proposal: CDU seeks continuous operation to lower energy costs

CDU/CSU politician Sepp Müller proposes using German coal power plants continuously to lower electricity prices and save gas, a move rejected by the SPD as a hindrance to renewable energy expansion.

2 sources. https://clstr.news/cluster/germany-coal-power-proposal-cdu-seeks-continuous-operation-to-lower-energy-costs

---
Cite as: Germany faces rising electricity costs and emissions. CLSTR, https://clstr.news/situations/german-debate-over-coal-power-plant-usage
