
Breadcrumbs
The cash cow has stopped giving
Are Germany's lignite plants now worthless?
About
Following the recommendations of Germany’s coal exit commission, the German Federal government has begun negotiations with operators for the early closure of 3GW lignite plants by 2022. Understanding the current lignite profitability is critical to these negotiations: how quickly, how many, and for what cost (if any), can lignite units be retired?
Executive summary
Lignite profits have collapsed
Dave Jones Electricity Analyst, Ember
We were surprised at just how aggressive the very recent collapse in lignite profitability has been. The lignite cash cow that’s existed for decades has disappeared. This report should give confidence to policymakers to negotiate the rapid closure of all older lignite units, and without having to write a blank cheque. Now, RWE and LEAG need to be transparent with the German people: how much are their power plants really worth, and how quickly can they phase out these ancient, polluting lignite units?