Tag Archives: HARD ROD / AUCTION (PIX)

Germany opens a third auction for payments to close coal-fired power plants | Instant News


FRANKFURT, March 3 (Reuters) – Germany’s energy regulator has opened a third round of bidding for coal-fired power plant operators to compete for compensation to cover their capacity, part of the country’s shift towards carbon-free power.

Germany has decided to abandon coal in 2038 and achieve a carbon-free energy system by 2050.

A spokesman for the Bonn Bundesnetzagentur-based regulator said a bid had to be submitted by April 30 to cover the 2,481 megawatt (MW) capacity that would go offline by the end of 2022.

The regulator’s website shows the maximum price per megawatt of closed capacity will be € 155,000 ($ 186,883).

In the auction, operators announce the price they will be prepared to close their factories in exchange for funds to cover some of their financial losses.

The winner is determined not only by price but also by the relationship between the costs expected to result in a CO2 reduction.

The second round, which opens on January 4 to deactivate capacity of 1,500 MW and which also sets a maximum price of 155,000 euros / MW, has concluded with results due in the coming weeks, the spokesman said.

Following the first round of bidding, which opened in September, regulators closed 4,788 MW of coal-fired power generation capacity on January 1.

The average pay to operators in the round was set at 66,259 euros / MW after bidding ranged from 6,047 euros / MW and 150,000 euros / MW.

The auction will continue in the coming years, but after 2027, coal-fired power plants can be ordered to close without compensation.

$ 1 = 0.8294 euros Reported by Vera Eckert; Edited by Edmund Blair

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