German utility RWE issues first estimates of coal exit costs
dpa / Rheinische Post
German utility RWE estimates costs of 1.2 billion euros for each gigawatt (GW) of power plant capacity switched off early to meet the country’s emissions goals, reports the news agency dpa in an article carried by RP Online. Germany’s coal commission has proposed removing some 3 GW of lignite capacity from the grid by 2022, and the commission recommends the federal government negotiate compensation with plant operators like RWE.
Germany’s coal commission has proposed exiting coal entirely by 2038 to reduce the nation’s carbon emissions. Parliament is set to debate how to implement the recommendations this spring as important commission figures like co-leader Barbara Praetorius urge policymakers to stick as close to the agreement as possible. For RWE, the prospect to receive compensation for decommissioned coal capacity gave company shares a boost after the commission agreement was announced. Company CEO Rolf Martin Schmitz last week said compensation might reach up to 1.5 billion euros for every GW taken offline.