German lignite reserve seen running this winter

“We expect German lignite-fired power plants to be deep in the money [this winter],” said Nathalie Gerl, power analyst at London Stock Exchange Group (LSEG).

Berlin already has reactivated 1.9 GW of lignite capacity until the end of March next year to help save gas in the power sector.

Despite gas storage levels at about 97% full, Germany was still at risk of seeing disruptions to its supply this winter, officials warned recently.

The lignite reserve consists of RWE units Neurath C (292 MW), Niederaussem E (295 MW) and Niederaussem F (299 MW), as well as the Leag units Jaenschwalde E and F (500 MW each).

Germany is in the process of phasing out coal, but the government allowed some lignite units to remain operational following sharply curtailed flows from Russia after it invaded Ukraine last year.

Leag expected to operate its two lignite units in the reserve this winter, said spokeswoman Kathi Gerstner. “We assume that the two 500 MW units will make an important contribution to security of supply… for a limited period until 31 March 2024,” she said.

RWE spokesman Jan Peter Cirkel said its units in the reserve could help contribute to supply this winter, but he declined to predict whether they would become operational.

Rising lignite use
German lignite-fired output was at 8.8 GWh/h in September, according to LSEG data, and should be 10 GWh/h this month.

In November and December, the output should rise to 12 GWh/h, Gerl said, noting an additional 1.5 GWh/h for the reactivated lignite units in the reserve.

These units generally operate in winter when demand for heating rises.

Germany is bracing for below-normal temperatures next week for the first time in an otherwise unseasonably mild autumn.

Demand for lignite has been low so far due to the mild weather, said LSEG’s Gerl. “This will change from next week, however, as we expect temperatures below normal again.”