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Released March 14, 2014 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Economic pressures have been blamed for RWE AG (OTC:RWEOY) (Essen, Germany) mothballing a new combined-cycle gas turbine (CCGT) plant in Lingen, Germany.
The company, which recently posted its first loss in more than 60 years of trading, announced it will take the 500 million plant off the grid from May 1 to August 31 for economic reasons.
The 876-megawatt (MW) plant, located in the German Emsland region, was only commissioned in 2010, and RWE heralded it as one of the most efficient, with a claimed rating of almost 60%. RWE said that plant could reduce CO2 emissions by 2 million tons per year while still supplying the same amount of power. It is located on the same site as older, gas-fired plants and the Lingen nuclear power plant.
"Photovoltaic plants are expected to provide a high level of electricity during this period," the company stated. "As a consequence, the already low utilisation of the power plant will decline further and wholesale market prices are on a very low level, so RWE Generation will respond by temporarily mothballing the plant."
Last summer, RWE decided to temporarily mothball the two older gas-fired power plants at the Lingen site, Emsland B and C, from the second quarter of 2014. With a capacity of 360 MW each, they will be out of operation from April 1 to September 30. RWE said it has notified the grid operator of planned outages.
The grid operator has already been notified of all the measures.
Earlier this month, RWE posted a net loss of 2.8 billion ($3.8 billion), which it attributed to impairment losses of 4.8 billion ($6.6 billion), that RWE had to recognise for the full year, mainly in respect of its power plant fleet. The loss was its first since the Federal Republic of Germany was established more than 60 years ago. RWE has warned that it is facing billions of euros in write-downs due to weak demand, low wholesale electricity prices and growing competition from subsidised renewable energy. For additional information, see March 5, 2014, article - RWE Posts First Loss in 60 Years.
View Plant Profile - 1077876
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The company, which recently posted its first loss in more than 60 years of trading, announced it will take the 500 million plant off the grid from May 1 to August 31 for economic reasons.
The 876-megawatt (MW) plant, located in the German Emsland region, was only commissioned in 2010, and RWE heralded it as one of the most efficient, with a claimed rating of almost 60%. RWE said that plant could reduce CO2 emissions by 2 million tons per year while still supplying the same amount of power. It is located on the same site as older, gas-fired plants and the Lingen nuclear power plant.
"Photovoltaic plants are expected to provide a high level of electricity during this period," the company stated. "As a consequence, the already low utilisation of the power plant will decline further and wholesale market prices are on a very low level, so RWE Generation will respond by temporarily mothballing the plant."
Last summer, RWE decided to temporarily mothball the two older gas-fired power plants at the Lingen site, Emsland B and C, from the second quarter of 2014. With a capacity of 360 MW each, they will be out of operation from April 1 to September 30. RWE said it has notified the grid operator of planned outages.
The grid operator has already been notified of all the measures.
Earlier this month, RWE posted a net loss of 2.8 billion ($3.8 billion), which it attributed to impairment losses of 4.8 billion ($6.6 billion), that RWE had to recognise for the full year, mainly in respect of its power plant fleet. The loss was its first since the Federal Republic of Germany was established more than 60 years ago. RWE has warned that it is facing billions of euros in write-downs due to weak demand, low wholesale electricity prices and growing competition from subsidised renewable energy. For additional information, see March 5, 2014, article - RWE Posts First Loss in 60 Years.
View Plant Profile - 1077876
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
