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Germany's energy regulator on Tuesday set Sept.
1 for the first auction by coal plant operators to shut down 4,000 megawatts of capacity
under a law designed to curb carbon emissions.
This is part of Germany's
plan to completely phase out coal mining and power generation by 2038.
Jochen Homann, chairman of the Bundestag, the federal network regulator, said: "These tenders have prompted people to quickly remove the most climate-damaging coal-fired power plants from the grid
.
At the same time, security of supply remains assured
.
”
Last year, a total of 20,000 MW of hard coal plant capacity provided 9%
of Germany's electricity generation.
A series of tenders will take place between 2020 and 2027, in which operators will announce the cost of their readiness to close the plant in exchange for funds to cover part of the financial losses
.
German power grid agency Bundesnetzagentur said in a statement that the highest price for the first round was 165,000 euros
per megawatt of electricity generated.
The final price determined will take into account the bidder's offer and the relevant CO2 emission level
of the relevant plant.
Some plant operators who operate imported hard coal complain that their assets face substantial write-downs
under the ruling.
They dispute utilities such as RWE and Uniper, which first mine domestic lignite and burn it in adjacent plants, which will then receive fixed high compensation to fund layoffs and help affected areas
.
Germany's energy regulator on Tuesday set Sept.
1 for the first auction by coal plant operators to shut down 4,000 megawatts of capacity
under a law designed to curb carbon emissions.
This is part of Germany's
plan to completely phase out coal mining and power generation by 2038.
Jochen Homann, chairman of the Bundestag, the federal network regulator, said: "These tenders have prompted people to quickly remove the most climate-damaging coal-fired power plants from the grid
.
At the same time, security of supply remains assured
.
”
Last year, a total of 20,000 MW of hard coal plant capacity provided 9%
of Germany's electricity generation.
A series of tenders will take place between 2020 and 2027, in which operators will announce the cost of their readiness to close the plant in exchange for funds to cover part of the financial losses
.
German power grid agency Bundesnetzagentur said in a statement that the highest price for the first round was 165,000 euros
per megawatt of electricity generated.
The final price determined will take into account the bidder's offer and the relevant CO2 emission level
of the relevant plant.
Some plant operators who operate imported hard coal complain that their assets face substantial write-downs
under the ruling.
They dispute utilities such as RWE and Uniper, which first mine domestic lignite and burn it in adjacent plants, which will then receive fixed high compensation to fund layoffs and help affected areas
.
