Compensation approved for coal-fired power plants
The EU Commission has given the green light for the compensation of 1.75 Billions Euro to LEAG for shutting down its coal-fired power plants in Saxony and Brandenburg This sum was negotiated as part of the 2020 coal compromise to Coal phase-out to advance.
Regulations of the EU Commission
The money is intended to cover costs associated with the phase-out of coal, with 1.2 billion euros being fixed and paid out regardless of whether the company becomes profitable. A further 550 million euros are tied to certain conditions in order to offset lost profits.
Planning security for future investments
This decision creates planning security for Saxony and Brandenburg as well as for LEAG in order to enable future investments in sustainable energy and jobs. Lignite-based power generation is to be brought to a controlled end by 2038 at the latest.
Positive reactions and criticism
Politicians such as Federal Minister Robert Habeck praise the decision as an important step for the region, while BUND Saxony criticizes the compensation. Felix Ekardt criticizes the fact that LEAG is not sufficiently transparent about how it intends to approach the renaturation of the lignite mining areas and sees the aid as support for a fossil fuel company.
Source: nachrichten.ag
