EU Commission approves billion-euro payment to RWE for coal phase-out
Published: Monday, Dec 11th 2023, 12:30
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Germany may pay the energy company RWE 2.6 billion euros in state aid for the coal phase-out. "The aid will compensate RWE for the premature closure of its lignite-fired power plants in the Rhenish coalfield," the EU Commission announced in Brussels on Monday.
According to the German Coal Phase-out Act, no more electricity will be generated from coal from 2038. In their coalition agreement, the coalition parties SPD, Greens and FDP had agreed to "ideally" bring forward the coal phase-out from 2038 to 2030.
Germany had already registered the compensation payment with the Commission in 2021, with 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 came to the conclusion that although the compensation payment in favor of RWE constitutes state aid, it is necessary for RWE to be able to phase out its lignite-fired power plants. The current net value of the lost profits is higher than the value of the compensation.
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