RWE estimates the compensation for closing its power plants in Germany
The special panel, brought to life by Angela Merkel, estimated that the coal phase-out in German power sector will take place in 2038 or sooner. In response to this statement, RWE the largest coal utility owner in Germany claimed the demand for coverage of costs of premature close of its power plants, underlining that the compensation should enclose the financial assurance of protection of ratepayers and communities.
The company expects at least 1.2 billion euro for every GW of withdrawn capacity, what in total gives around 19 billion euro for the entire company. The amount given encompass also the cost of shutting down the mines supplyig the fuel to the power plants. The value of the RWE's expected compensation is considered as not realizable and not corresponding to the market situation. Currently, the biggest foreign investors of coal plants in Germany are selling out their assest for very low price (Engie, Vattenfall). Although, in Germany, no uniform and solid methodology has been elaborated in order to ensure the socially resonsible transition of the still, strongly coal-depended power industry.