On Friday 30 September, the European Commission approved a temporary German aid package of €450 million to allow five lignite-fired power plants to be on standby and ready to be activated in case of a natural gas shortage.
This measure will compensate power plant operators for the costs of preparing the plants in case of need. The measure, under which aid can be provided until 31 March 2024 at the latest, will help preserve the availability of natural gas in the context of a shortage of Russian natural gas caused by Russia’s war against Ukraine.
The aim of this support is to build up a temporary lignite supply reserve consisting of five currently deactivated lignite power plants and to compensate the plant operators for the costs incurred so that the plants are operational and ready to return to the market if needed. Operators will not be compensated for the period of operation of the plants, as at that time they are participating in the market and receiving income. The aim of the measure is to save natural gas by providing the German and, more generally, the European electricity system with additional production capacity in the short term to replace electricity production from Russian natural gas.
The five plants will be transferred to a temporary lignite supply reserve for the period between 1 October 2022 and 31 March 2024. Germany will also compensate the two operators concerned, Lausitz Energie Kraftwerke AG and RWE AG, for the necessary costs incurred.
The authorisation to operate on the market would initially be given for a limited period, until June 2023 at the most, but could be extended by the German authorities until the end of March 2024 if necessary. (Original version in French by Lionel Changeur)