A third less electricity: RWE pulls the plug on coal-fired power plants

A third less electricity
RWE pulls the plug on coal-fired power plants

Is there a threat of a power shortage in Germany soon? RWE announces that it will offer a third of the power plant capacity less by 2022. The reason is the energy transition and the abandonment of coal. Nevertheless, company boss Schmitz sees no cause for concern.

The largest German power plant operator, RWE, will reduce its electricity generation in Germany by more than a third by the end of 2022 due to the phase-out of coal. "In 2019 RWE still had 20.8 gigawatts of power plant capacity in Germany and by the end of 2022 it will be 13.3 gigawatts – and that includes the planned expansion of renewable energies by 50 percent," said RWE boss Rolf Martin Schmitz "World". A third of the lignite capacity will then be out, all hard coal plants and all nuclear power plants. "You can't build that fast to compensate for this decline, even if the framework conditions were better."

Even if other energy providers are also reducing their capacities significantly, Schmitz sees no reason to worry about the power supply in the next few years. "We still have overcapacities and reserve power plants, finally also import possibilities and last but not least the intervention possibilities of the Federal Network Agency", said the RWE manager.

A few gigawatts of new gas turbines will have to be built by 2030 in order not to endanger the security of supply. But there is still enough time for that. For investments in wind turbines on land and at sea, Schmitz believes that the conditions in other countries are better. There is currently no business model for the construction of gas power plants to secure the power supply.

"In other countries a capacity premium is paid for power plants that step in when the wind isn't blowing and the sun isn't shining," explained Schmitz. Because such a power plant should only run for a few hours a year and therefore cannot be financed from ongoing operations. "This requires a special remuneration, and as long as it doesn't exist in Germany, I won't build a power plant here," he added.

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