The European Commission has authorised a 450 million euro plan by Germany to temporarily operate five lignite-fueled power plants to make up for shortages in natural gas supply from Russia. This is in accordance with member states’ aid laws.
The European Commission stated in a press release posted on its official website today, Saturday, that this measure, which allows assistance to be provided until at least March 31, 2024, will compensate power plant operators for the costs associated with getting their facilities ready to run if necessary and will also help to protect the supply of natural gas. amid the Russian gas shortage brought on by the conflict in Ukraine.
According to Margrethe Vestager, Executive Vice President of the Commission in charge of competition policy, “this temporary measure will enable Germany to mitigate the economic impact of Russian military operations in Ukraine, as it will contribute to replacing gas in case of shortages, thus enhancing our preparation for the upcoming winter.”
According to the statement, Germany had informed the Commission of its intention to adopt a measure with an estimated budget of 450 million euros, creating a temporary reserve for lignite supplies, consisting of restarting five lignite power plants after their suspension, compensating the operators of these plants for the costs incurred during the operation of the factories, and preparing the factories for return to the market when necessary.
In order to replace electrical generation with Russian natural gas in the short term, this plan aims to supply natural gas by adding additional generation capacity to the German and European electricity systems.
German plan to increase electricity output is approved by the European Commission.
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