Germany compensates the energy company RWE. The company will receive over two billion euros for shutting down its lignite-fired power plants in the Rhineland early.
Germany is allowed to pay the energy company RWE 2.6 billion euros in state aid for the coal phase-out. “The aid will compensate RWE for the early closure of its lignite-fired power plants in the Rhenish region,” the EU Commission announced in Brussels on Monday.
According to the German coal phase-out law, electricity will no longer be generated from coal from 2038. The traffic light parties SPD, Greens and FDP had agreed in their coalition agreement to “ideally” bring forward the coal phase-out from 2038 to 2030.
EU Commission approves RWE compensation
Germany had already reported the compensation payment to the Commission in 2021, a total of 4.35 billion euros for two operators. 2.6 billion euros were earmarked for the RWE lignite plants in the Rhineland and 1.75 billion euros for the Leag plants in Lusatia.
The Commission concluded that although the compensation payment to RWE constituted state aid, it was necessary to enable RWE to phase out its lignite-fired power plants. The current net value of the lost profits is higher than the value of the compensation.
Source: Stern
