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Germany To Subsidise Coal Plants For Renewable Back-Up


Operators of brown coal power plants in Germany who will participate in a new reserve to provide electricity in the case of shortages will receive ‘cost-based compensation’, according to a German government document seen by Reuters on Thursday.

The details will be stipulated by law, the document said.

Germany earlier agreed on Thursday to mothball about five of the country’s largest brown coal power plants to meet its climate goals by 2020, but also agreed a reserve system, where utilities could switch on the brown coal plants if there were power shortages in the country.

On top of 2.7 Gigawatts which will go into the reserve, the brown coal industry will also have to save a further 1.5 million tonnes in CO2 emissions.

A reserve of new, flexible power plants of up to 2 Gigawatts will be set up for southern Germany from 2021, said the document.


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