Germany is allowed to pay the energy company RWE 2.6 billion euros in state aid. The EU Commission approved the aid paid for the early closure of the lignite-fired power plants in North Rhine-Westphalia.
The European Commission has approved a €2.6 billion German aid measure for the energy company RWE. The Commission said this was compatible with EU state aid rules.
The funding is intended to compensate RWE for the early closure of brown coal-fired power plants in the Rhenish mining area. According to the EU Commission, state aid is necessary so that RWE can phase out its lignite-fired power plants. The current net value of the lost profits is higher than the value of the compensation.
Germany had already reported the compensation payment to the Commission in 2021. A total of 4.35 billion euros is involved for two operators. In addition to the 2.6 billion euros for RWE, there is 1.75 billion euros for the LEAG plants in Lusatia.
Phase out coal by 2038 at the latest
According to the German coal phase-out law, coal-fired electricity generation in Germany is to be reduced to zero by the end of 2038.
The transformation of the Rhenish Revier should go even faster. The federal government concluded the “Reviervertrag 2.0” in order to achieve the phase-out by 2030.
Kathrin Schmid, ARD Brussels, tagesschau, December 11, 2023 12:00 p.m