Coal’s place as the biggest power generator in Germany could face a new threat, after the announcement of the country’s general election results.
The anti-coal Green Party are in the shake-up to form the next government after Sunday’s federal election.
The country’s largest utility, RWE, saw its share price dip 4 per cent following the news. The Greens have previously stated that they would shut down 20 of Germany’s highest emitting coal-fired power plants if they get into power as a condition for going into coalition.
RWE generates more than two-thirds of its power through hard coal or lignite-powered plants.
Angela Merkel’s Christian Democrat-led bloc remained the largest party as expected after the vote, although it did shed many seats. The Social Democratic party has ruled out a continuation of the “grand coalition” that has been in power since 2013, raising the prospect of a three-way coalition between the Christian Democrats, the liberal Free Democrats and the Green party.
The so-called “Jamaica coalition” would have a comfortable majority in the German parliament, but has never been tested at the national level.
The Greens will also put pressure on prospective coalition partners to put together a timetable on coal phase-out.
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