German regulator shut down 4,000 MW hard coal plant

The auction system implements parts of a detailed package of bills passed by the German government in June 2018 to arrange for a long-term exit from coal mining and generation activities.

Frankfurt (Natural Energy News): Germany's energy regulator on Tuesday invited the operators of tough coal-powered power stations to compete for compensation for the closure of 4,000 megawatts (MW) of capacity under laws to curb carbon emissions set September 1 date for the auction.

The auction system implements parts of a detailed package of bills passed by the German government to arrange a long-term exit from coal mining and generation activities until June 2038.

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Jochen Homan, president of the Federal Network Regulator, Bundetzagentur, said, "Tenders increasingly create an incentive to remove the most damaging hard coal-fired power plants from the grid. At the same time, there is a guarantee of supply security."

Last year, a total of 20,000 MW of hard coal plant capacity produced 9% of Germany's production.

A series of tenders will be carried out between 2020 and 2027, with operators announcing the price at which they will be prepared to close their plants in exchange for money to compensate for some of their financial losses.

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The maximum price in the first round would be 165,000 euros ($ 194,403.00) per MW of generation capacity, Bundesnetzagantur said in a statement.

The final price has been decided to take into consideration the bidders' proposals and the relevant CO2 emission levels of the plants.

Some operators of imported hard coal-fired plants have complained that they face heavy write-ups on their property under the rulers.

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They have raised objections to utility incumbents such as RWE and Uniper - which mine domestic brown coal and then burn it to nearby plants - to receive higher, fixed compensation for lay-offs and affected areas. Is being set to help.

Unlisted Steg, which operates 5,500 MW last week, said it is preparing to challenge higher payments in the country's constitutional court over the terms of the coal exit, citing interference with proprietary rights.

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