The Looming Stagnation: Why the Coal Phase-Out Must Be Halted Immediately

Current developments in the energy market reveal a dangerous imbalance that worsens year by year. Rising energy prices, the migration of industrial production facilities, and the growing threat of brownouts endanger Germany’s economic standing, particularly the industrial fabric in eastern German regions. What was once sold as an ecological modernization project has now revealed itself as a self-destructive political misstep that threatens the foundation of energy supply and economic stability.

Rising Energy Prices and Loss of Competitiveness

The energy transition was launched with the goal of a sustainable future, but it was implemented without regard for market realities. Today, industry and citizens are paying the price for political shortsightedness. Energy costs are skyrocketing, and energy-intensive sectors—metallurgy, glass, chemicals, paper, and building materials—are losing ground to international competitors. High electricity costs are driving companies to countries with cheaper energy conditions, weakening Germany’s industrial core. This development not only shrinks productivity but also the tax base, while increasing dependence on electricity imports.

Industrial Migration and Erosion of Regional Economic Strength

The relocation of energy-intensive businesses abroad hits regions like Saxony, Brandenburg, and Lusatia particularly hard. These areas, already grappling with structural disadvantages, are now losing their remaining economic foundations. Jobs are disappearing, value creation is lost, and the entire economic cycle is weakened. The state faces higher social welfare costs while revenues from business taxes and payroll deductions decline. This financial imbalance threatens municipal structures and public services in the long term.

The Threat of Brownouts: A Power Grid at Its Limits

As electricity consumption rises, driven by digital transformation and transport electrification, conventional generation capacity is declining due to the shutdown of coal-fired power plants. The result is growing grid instability. Experts from the Federal Network Agency warn of the real danger of brownouts—short-term voltage drops or partial grid failures. These can paralyze entire production processes, endanger critical infrastructure like hospitals, and undermine confidence in supply reliability. An unregulated coal phase-out thus threatens not only the economy but also the daily lives of people who depend on a stable power supply.

Legal Obligation for Review—A Necessary Halt

Germany’s Coal Phase-Out Act explicitly mandates regular reviews to assess the impacts of the phase-out. This review is not a formality but a matter of security policy necessity. It aims to ensure grid stability, market mechanisms, and supply security. The current situation demands an immediate questioning and pause of the phase-out policy. Only a temporary halt can allow for a thorough review of supply security and the definition of a realistic energy mix. Otherwise, an energy policy disaster looms, driven by ideological rigidity.

A Renaissance of the Lusatian Region as an Opportunity

Lusatia stands as a prime example of the failures of current energy policy. For decades, the region was a guarantor of Germany’s industrial stability. It not only produced electricity but also supported an entire economic structure. The accelerated coal phase-out threatens to break this backbone for good. However, a political U-turn could revive the Lusatian region. Controlled continuation and targeted modernization of lignite-based power generation—combined with new emission reduction technologies—could secure jobs, stabilize the energy market, and serve as a bridge to future energy sources.

Reason Over Ideology

Germany’s energy policy stands at a crossroads. The path taken leads to uncertainty and economic weakness. A politically enforced coal phase-out under current conditions poses a risk to industry, society, and the state. It is time to act pragmatically rather than preach ideologically. The legally mandated review mechanism must not be ignored but used to course-correct in time. A pause in the phase-out is not a step backward but a necessary measure to secure future viability. Only a sober reassessment can prevent Germany’s industrial base from falling into the shadow of its own energy policy.