In the east, there's preliminary support from Brussels for compensating coal phase-out.
As per the Federal Ministry of Economics, a total of 1.2 billion euros has been agreed upon in the political accord. In case the compensation incident arises, i.e., if the Leag removes the power plants from the grid, an additional 550 million euros can be dispensed. The "technical execution" of this pact will also take some time, mentioned Habeck.
The German government mandated the coal phase-out legally until 2038. To assist RWE, a company in the Rhineland lignite mining area and the Leag, they promised several billions of euros. However, the European Commission has raised concerns over the appropriateness of these compensations, leading to a review process.
Last year, RWE's subsidies were approved as part of an agreement made with the company to advance the coal phase-out in the Rhineland to 2030. Meanwhile, the Leag insists on retaining the exit year 2038, leading to complicated negotiations with Brussels competitors.
Ines Froehlich (SPD), State Secretary in the Saxon State Ministry for Economics, Labor, and Transport, expressed her complete satisfaction and relief. The State Minister of Brandenburg, Jorg Steinbach (SPD), termed the accomplishment a "significant landmark for Brandenburg and Saxony." "We now have clarity on which payments are accepted," he stated.
Habeck, meanwhile, shared his views on an early lignite phase-out in the east, a stance supported by the federal government. Nevertheless, this was denied by the local stakeholders. In light of the escalating CO2 price and the proliferation of renewable energy, Habeck sees an early end to coal-fired power generation from both an environmental and economic perspective. On the contrary, Leag's CEO, Thorsten Kramer, championed his company's strategy, asserting that lignite coal is vital for regional supply security.
