Released March 26, 2015 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Coal-fired power plants are in the cross-hairs again as Europe's largest economy, Germany, is considering legislation that will force utilities to further cut emissions at their most polluting plants or face fines.
Germany's Energy Minister, Sigmar Gabriel, has prepared a draft proposal to the other members of the country's coalition government which outlines plans to cut Germany's CO2 emissions by a further 22 million tonnes by 2020. He argues that the cuts are needed to keep the country on track to hit its ambitious climate goal of a 40% reduction in greenhouse gas emissions by 2020 from levels recorded in 1990. The German government has previously stated that it may miss its 2020 emissions target by between 5% and 8%.
The new measures would see coal plants restricted to producing 7 million tonnes of C02 per gigawatt (GW) of installed capacity and could be covered by their purchase of permits from the European Union's Emissions Trading Scheme (ETS). Exceeding that amount would result in fines.
The measures will hit older, more polluting lignite-fired plants the hardest, and will have less impact on more modern hard coal and gas-fired plants. At its worst, it could result in the closure of up to eight coal-fired plants. For additional information, see November 27, 2014, article - Germany Split over Coal-Fired Power.
Germany is a champion for renewable energy in Europe, getting a quarter of its power from mainly solar and wind sources. However, it still relies on coal for 45% of its electricity and will need both coal and gas-fired plants to balance its electricity mix as it invests in more renewable energy, the reliability of which can be affected by the weather.
The proposals have sparked outrage from leading German energy company, RWE, which claimed they will force power plant and mine closures as well endanger 30,000 jobs in the lignite industry.
"A closer look at the proposed model results in very different conclusions -- with far-reaching consequences, especially for the lignite industry and the jobs that depend on it," RWE stated. "The earnings strength of the lower-cost power stations in Germany in particular will be damaged and value will be destroyed. "Old" power plants will lose so many operating hours and gross margins as a result of the proposals of the Federal Ministry for Economic Affairs and Energy that there can be no talk of "reduced operations" -- it will in fact mean shutting down plants. They will not be able to cover their costs via the utilisation hours that remain to them or they would be pushed out of the market due to the additional fees of 18-20 per tonne of CO2."
It added: "The proposals of the Federal Ministry for Economic Affairs and Energy will introduce a total exit from lignite in the short run. Not only power plants but also the associated open-cast mines and operations would have to be closed down. Restructuring costs for the companies affected would run into the billions".
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. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Germany's Energy Minister, Sigmar Gabriel, has prepared a draft proposal to the other members of the country's coalition government which outlines plans to cut Germany's CO2 emissions by a further 22 million tonnes by 2020. He argues that the cuts are needed to keep the country on track to hit its ambitious climate goal of a 40% reduction in greenhouse gas emissions by 2020 from levels recorded in 1990. The German government has previously stated that it may miss its 2020 emissions target by between 5% and 8%.
The new measures would see coal plants restricted to producing 7 million tonnes of C02 per gigawatt (GW) of installed capacity and could be covered by their purchase of permits from the European Union's Emissions Trading Scheme (ETS). Exceeding that amount would result in fines.
The measures will hit older, more polluting lignite-fired plants the hardest, and will have less impact on more modern hard coal and gas-fired plants. At its worst, it could result in the closure of up to eight coal-fired plants. For additional information, see November 27, 2014, article - Germany Split over Coal-Fired Power.
Germany is a champion for renewable energy in Europe, getting a quarter of its power from mainly solar and wind sources. However, it still relies on coal for 45% of its electricity and will need both coal and gas-fired plants to balance its electricity mix as it invests in more renewable energy, the reliability of which can be affected by the weather.
The proposals have sparked outrage from leading German energy company, RWE, which claimed they will force power plant and mine closures as well endanger 30,000 jobs in the lignite industry.
"A closer look at the proposed model results in very different conclusions -- with far-reaching consequences, especially for the lignite industry and the jobs that depend on it," RWE stated. "The earnings strength of the lower-cost power stations in Germany in particular will be damaged and value will be destroyed. "Old" power plants will lose so many operating hours and gross margins as a result of the proposals of the Federal Ministry for Economic Affairs and Energy that there can be no talk of "reduced operations" -- it will in fact mean shutting down plants. They will not be able to cover their costs via the utilisation hours that remain to them or they would be pushed out of the market due to the additional fees of 18-20 per tonne of CO2."
It added: "The proposals of the Federal Ministry for Economic Affairs and Energy will introduce a total exit from lignite in the short run. Not only power plants but also the associated open-cast mines and operations would have to be closed down. Restructuring costs for the companies affected would run into the billions".
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. To contact an office in your area, visit the Industrial Info "Contact Us" page.
