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03 Apr 2019, 12:26
Benjamin Wehrmann

German government does not take coal exit compensation for plant operators as a given

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The German government says the jury is still out on the question whether the operators of coal plants are eligible for compensation payments once their facilities are taken off the grid in the framework of Germany鈥檚 coal exit plan. In to a parliamentary inquiry by the pro-business party FDP, the government says it is currently still assessing the final report by Germany鈥檚 coal exit commission, which was published in late January. A price tag for 鈥減ossible鈥 compensation payments could only be given once the report鈥檚 assessment is finalised, the answer given by Germany鈥檚 economy and environment ministry (BMWi) on behalf of the government says.
The government also says that the question of electricity supply security in the context of a coal exit had to be addressed in a wider European energy trade context rather than by looking at performance of individual regions and that it will 鈥渃onsult with its neighbours regarding the cross-border consequences of a reduction of coal-fired power production鈥. It adds that it regards Germany鈥檚 nuclear power plants as 鈥減art of a European excess capacity鈥 for power production, rather than a key contributor to German supply security. The government also expects a 鈥渕oderate鈥 increase of power prices by 2030 due to 鈥渁n isolated coal measure鈥 but adds that prices could also fall, depending on the parallel development of renewable energy sources. Moreover, the government says it assumes that gas-fired power and heat production, especially those of combined-heat-and-power plants (CHP), will play a greater role as coal capacity is taken offline.

The coal exit commission said the government should enter into direct talks with coal plant operators and should apply 鈥渞egulatory law鈥 if no agreement can be found on compensation payments. 麻豆无码版 company RWE, which operates the coal plants in western Germany, had claimed between 1.2 and 1.5 billion euros for every gigawatt (GW) that is taken off the grid. Not least thanks to the prospect of high compensation payments, investment bank Goldman Sachs recently gave RWE a good rating, despite the company having a hard time coping with the effects of declining power production by its coal and nuclear plants.

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