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Leag needs a quick decision on billion-euro aid

The state wants to compensate energy companies for phasing out coal-fired power generation. Brussels has no objections to the aid for RWE. Impatience is growing in the coal-mining regions of eastern Germany.

Steam rises from the cooling towers of a lignite-fired power plant. Photo.aussiedlerbote.de
Steam rises from the cooling towers of a lignite-fired power plant. Photo.aussiedlerbote.de

Energy - Leag needs a quick decision on billion-euro aid

Following the approval of billions in compensation for RWE for the coal phase-out, the state of Brandenburg is pushing for a quick decision by the EU Commission for the power plant operator Leag as well. Economics Minister Jörg Steinbach (SPD) said in Potsdam that he welcomed the decision for the energy company RWE. However, it was now urgently necessary for the proceedings for Leag to be brought to a speedy conclusion. "The matter must be clarified. Leag also needs certainty at this point."

The Federal Ministry for Economic Affairs and Energy announced in Berlin on Monday: "We want there to be a good solution for Leag too and are working hard to achieve this." However, the procedure for Leag is more complex due to the longer period until the lignite plants are decommissioned and will be assessed separately in Brussels. The RWE power plants are to be decommissioned by 2030, while the Leag power plants will not be decommissioned until 2038 at the latest. While both procedures were and are being intensively negotiated in parallel in Brussels by the Federal Government, according to the Ministry of Economic Affairs, the less complex RWE procedure was more ready for a decision.

The federal government may pay RWE state aid amounting to 2.6 billion euros for the early closure of the power plants for the coal phase-out by 2030. This does not violate EU regulations, the EU Commission announced on Monday.

According to the information, aid amounting to 1.75 billion euros is planned for Leag in Lusatia. This involves compensation for lost profits and additional post-mining costs. Leag CEO Thorsten Kramer said on Monday that the restructuring of his company requires planning security and a prompt and positive decision in the state aid proceedings. Saxony's Minister-President Michael Kretschmer (CDU) reacted with disappointment to the decision on the western German coalfield.

Read also:

  1. Jörg Steinbach, the Economics Minister from the SPD in Brandenburg, has expressed the need for a prompt decision by the EU Commission regarding the state aid for Leag, a power plant operator.
  2. The EU Commission will assess the case for Leag separately in Brussels due to the longer period until their lignite plants' decommissioning, which is set for 2038 at the latest.
  3. The Federal Ministry of Economics and Energy in Berlin has stated their desire for a positive outcome for Leag, acknowledging that the process is more complex than the one for RWE.
  4. Thorsten Kramer, CEO of Leag, has emphasized the importance of planning security and a swift, positive decision in the state aid proceedings for his company's restructuring.
  5. The SPD's Jörg Steinbach, representing Brandenburg, and Saxony's CDU Minister-President Michael Kretschmer have both been actively involved in the negotiations regarding Leag and RWE's state aid proceedings in Brussels.
  6. The proposed state aid for Leag in Lusatia is estimated to amount to 1.75 billion euros, covering lost profits and additional post-mining costs.
  7. The approval of billions in compensation for RWE for their coal phase-out has set a precedent, with the EU Commission announcing that it does not violate EU regulations.

Source: www.stern.de

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