FRANKFURT (Reuters) – More than 1,500 megawatts (MW) of coal-fired power plants will close from December 8 this year, Germany’s energy regulator said on Thursday, announcing the results of a second round of auctions designed to cover closing costs. polluting plants.
Germany has pledged to abandon coal by 2038 and achieve a largely carbon-free energy system by 2050, but is also seeking to reduce its impact on utilities, territories, jobs and public budgets.
Under a series of tenders between 2020 and 2027, operators were asked to state what price they would be prepared to close their hard coal plants in exchange for funds to partially offset their losses.
The regulator sets a maximum price per MW of capacity to limit public sector bills. The final price takes into account the bidder and the CO2 emissions of the plant concerned.
Of the 1,514 MW that will go offline in December, the standout is Uniper’s 757 MW Wilhelmshaven plant on Germany’s North Sea coast.
After 2027, compensation is no longer available, so operators are ready to bid as low as possible to avoid losses from competitors.
“The auction is again oversubscribed,” said Jochen Homann, head of the Bundesnetzagentur regulator. “The highest awards lie well below the maximum prices previously set.”
In all, the three successful bidders will receive between zero and 59,000 euros per MW, regulators said.
This is what they offered to close their factory, after the regulator set a maximum price of 155,000 euros / MW.
The third auction bid for the closure of 2,481 MW by the end of 2022 will close on April 30.
After the first auction, regulators closed 4,788 MW of coal-fired power plant capacity on January 1, 2021.
The more highly polluting brown coal is closed through a separate scheme with fixed compensation.
Reporting by Vera Eckert, editing by Barbara Lewis