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Coal phase-out: unequal distribution of funds

Structural change in Lusatia will cost billions of euros. Brandenburg and Saxony will receive different amounts in a first tranche to the mining company Leag.

The Schwarze Pumpe lignite-fired power plant operated by Lausitz Energie Bergbau AG.
The Schwarze Pumpe lignite-fired power plant operated by Lausitz Energie Bergbau AG.

Energy - Coal phase-out: unequal distribution of funds

The one billion and two hundred million Euros in "fixed costs" for follow-up costs, mainly rehabilitation costs, do not go to the same extent to Brandenburg and Saxony. "Based on the total commitment and the shares in the states, the quote for Brandenburg is 43 percent and 57 percent for the Free State of Saxony," explained a spokesperson for the Brandenburg Economy Ministry in response to an inquiry. The extent of the rehabilitation depends on the specific concepts, which are differently extensive.

To cushion the coal phase-out in Eastern Germany, the EU Commission has given the green light in principle for a state compensation for the mining company Leag. This concerns a sum of up to one billion seven hundred and fifty million Euros. The background is the agreed gradual coal phase-out by 2038. The one billion and two hundred million Euros for rehabilitation and social agreements flow independently of when the Leag actually exits coal-fired power generation.

The remaining amount of up to five hundred and fifty million Euros is, according to the Federal Ministry of Economics, subject to conditions. It will then be taken into account if it is proven in the future that the Leag's power plants were also economically viable beyond the coal phase-out dates specified in the law and the Leag therefore lost profits due to the statutory exit regulation.

The Greens in the Brandenburg State Parliament had recently criticized that the allocation of funds by the Economy Minister had not been sufficiently explained. Now, approximately 43 percent of the compensation amount, or five hundred and sixteen million Euros, is flowing to Brandenburg. Approximately six hundred and eighty-four million Euros are going to Saxony. "The question of the costs of rehabilitation and the financing of LEAG with tax funds remains a book with seven seals, even for us parliamentarians," had the leader of the Green fraction, Benjamin Raschke, said at the beginning of the week. The Brandenburg State Chancellery must finally ensure transparency.

  1. Despite the unequal distribution of the one billion and two hundred million Euros in rehabilitation costs between Brandenburg and Saxony, the EU Commission approved funding for East Germany's coal phase-out, specifically for the mining company Leag in Potsdam, Lusatia.
  2. The allocation of funds for the coal phase-out in East Germany, which includes Brandenburg and Saxony, follows a specific ratio. Brandenburg will receive 43% or around five hundred sixteen million Euros, while Saxony will receive 57%, or approximately six hundred eighty-four million Euros.
  3. The remaining amount, up to five hundred fifty million Euros, is contingent upon the Leag's power plants proving to be economically viable beyond the agreed coal phase-out dates. This condition is crucial in determining the final allocation.
  4. The EU Commission's support for the coal phase-out in East Germany includes both rehabilitation costs and social agreements, all independent of the exact exit time of the Leag from coal-fired power generation.

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