Brussels approves German hard coal exit tender
(EurActiv, 26 Nov 2020) The European Commission on Wednesday (25 November) green-lit a scheme under which operators of hard coal-fired power plants in Germany will be paid to shut down their stations earlier in the wake of the country’s accelerated exit from the fuel.
“Phasing out hard coal-fired power plants contributes in a crucial way to the transformation to a climate-neutral economy, in line with the European Green Deal objectives,” European Competition Commissioner Margrethe Vestager said in a statement.
“Germany’s plans to provide incentives for the early closure of such plants and to compensate the businesses that leave the market early via competitive tenders are in line with EU State aid rules,” she added.
According to the German coal phase out law, passed in June this year, the use of coal for the production of electricity will have to be phased out by 2038.
The Coal Phase-out Act includes a higher maximum price for auctions in which operators can bid for compensation for the closure of their coal plants. Overall, operators will receive compensation payments totalling €4.35 billion.