Phase out coal and tap the potential of new sources of energy generation

Phasing out coal is challenging. For it to happen, the broad economic, social and political impacts on regions and communities must form part of the strategy. In Germany, for example, the Commission on Growth, Structural Change and Employment is working to achieve a smooth coal phase-out by 2038, by advising on how to support structural change, retraining, providing early retirement options, and more.

Distributed energy resources, including rooftop solar, distributed storage, and electric vehicles, are transforming the current electricity system and offer vast potential for addressing the intermittency of renewable generation. So-called “behind the meter” generation produces power on site and turns customers into “prosumers” (producer-consumers), as they can sell excess energy back to the grid. Uptake of distributed generation can be increased through net-metering schemes, financial incentives and mandatory deployment of distributed generation for new buildings. Policy should encourage the deployment of smart meters to enable real-time pricing and emerging business models to optimise demand and help integrate variable renewable energy such as wind and solar.

EXPLORE FURTHER

Article: Phase Them Out! (Fossil fuel subsidies), OECD Observer (2017).

Article: Cool Generation, OECD Observer (2018).

Report: Investing in Climate, Investing in Growth, OECD (2017).