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Pending Discourses Regarding the Acquirement of Hydropower Facilities

In an update pertaining to Bavaria, Minister-President Soeder disclosed plans to acquire more than 80 hydroelectric power plants from Uniper. However, little progress has since been made.

The Free State will acquire the "homecoming rights" associated with approximately 85 hydroelectric...
The Free State will acquire the "homecoming rights" associated with approximately 85 hydroelectric facilities situated on the Isar, Lech, Danube, and Main, from Uniper. This purchase encompasses the Altheim power plant located on the Isar.

- Pending Discourses Regarding the Acquirement of Hydropower Facilities

A "New Developments" Update for Bavaria was shared by Minister-President Markus Söder (CSU) in a government statement back in June. One key point mentioned was the seizure of over 80 hydropower plants from Uniper through a process called reversion rights.

Since then, there haven't been any discussions between the Free State and Uniper, as revealed by an SPD inquiry to the Landtag. A representative from Uniper also confirmed this information, which was initially reported by the Bavarian Broadcasting Corporation.

Beginning in 2030, the Free State might start exercising their reversion rights in old contracts and buy back power plants from Uniper. However, instead of negotiating with the company, the Free State appears to be hoping for a solution from the federal government, which took over 99% of Uniper during the energy crisis caused by the Ukraine war.

Prompt purchase wasn't feasible due to the Federal Ministry of Finance

An immediate purchase of Uniper's hydropower plants by the Free State hasn't been successful so far due to the Federal Ministry of Finance, a spokesperson for the Bavarian Ministry of the Environment stated. The "options for handling reversion rights" are currently being investigated.

However, the initiative to find a faster solution with the federal government, independent of reversion rights, seemed unlikely to succeed from the outset. Due to legal restrictions, Uniper still holds full responsibility for the operational business, including the sale of power plants, according to the Federal Ministry of Finance. This information should have been known to the Bavarian state government, a spokesperson for the Federal Ministry of Finance added.

The SPD calls for talks with Uniper

The SPD faction finds the Free State's approach perplexing. The state government hasn't yet responded to the suggestion from Berlin, a spokesperson said. Slightly hinted between the lines: "Why don't you just talk to the management yourself?" The energy policy spokesperson Florian von Brunn urged: "The Söder government must now take action and engage in direct negotiations with the Uniper management about the nationalization of the hydropower plants."

His demand goes further. Negotiations should also cover the acquisition of the Walchensee power plant and the pumped storage power plants. The Walchensee power plant, as a symbol of industrial history and electrification in Bavaria, should belong to the Free State and the Bavarian people, von Brunn believes. There is no reversion right for the Walchensee power plant or the pumped storage power plants.

Uniper shows no interest in selling the power plants

On the flip side, Uniper displays no interest in selling the power plants. The reversion cannot be prevented, a spokesperson said. However, hydropower is crucial for Uniper's CO2-free electricity production, he stressed. The sale of the Walchensee power plant and the pumped storage power plants is not being considered.

At present, the Ministry of the Environment cannot provide an estimated cost for the Free State to acquire the approximately 85 Uniper hydropower plants that have reversion rights, located on the Isar, Lech, Danube, and Main. These plants can be acquired by the Free State in good structural condition and after compensation to Uniper. The specifics of this compensation need to be negotiated for each individual power plant.

Criticisms arise due to the phased withdrawal of property rights at power plants from 2030 onwards. Some argue that this could lead to a fragmented system of responsibilities for many years, which could negatively impact effective flood management. Whether the Ministry of the Environment shares this concern isn't immediately clear, according to the spokesperson's response to a query.

The Federal Ministry of Finance has been a barrier to an immediate purchase of Uniper's hydropower plants by the Free State. The SPD faction urges the Söder government to directly negotiate with Uniper's management about the nationalization of the hydropower plants.

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