A SWOT Analysis Approach for Assessing the Sustainable Transition in the Coal Energy Sector in Germany

The coal energy sector plays a significant role within the German economy, providing a key source of growth and energy supply. However, it is also a major contributor to climate change. In order to address this issue, Germany has adopted a policy to phase-out coal by 2038 at the latest. This paper employs a SWOT (strengths, weaknesses, opportunities, and threats) analysis approach to evaluate the sustainable transition of Germany’s coal energy sector. A case study using semi-structured interviews with key actors was conducted in the second largest mining region in Germany, the Lusatia region. The analysis shows that the strengths of the area include its energy expertise, existing infrastructure with renewable energy potential, and availability of land for industrial development and settlement. However, dependence on lignite, internal resistance to change, lack of competence in digital technologies, and complex bureaucracy for implementing new projects represent some of the key weaknesses that companies must address in order to succeed. Some opportunities arise from the structural changes currently occurring, highlighting the potential of a growing renewable energy market and the development of innovative business models, as well as the creation of new employment opportunities and the enhancement of the region’s attractiveness for global corporations. Nevertheless, a number of factors present a threat to the sustainable transition, including concerns about energy security, high green fuel costs, social resistance, a shortage of skilled labor, labor migration, and the loss of cooperation partners.