Germany's 5th coal phase-out auction picks 1 GW of bids

German coal-fired power plants with a total capacity of 1,015 MW will be shut down by May 27, 2024, and receive compensation from the federal government, the Federal Network Agency said on Friday.

The fifth round of the coal phase-out auction was slightly undersubscribed as the power regulator targeted 1,222 MW.

Six bids each with a capacity in the range of 1.48 MW and 517 MW were successful. The largest coal-fired power plant that will receive compensation in this round of the auction is Block 7 of the Rheinhafen steam power plant (RDK) operated by EnBW Energie Baden-Wuerttemberg AG (ETR:EBK).

One bid was excluded from the competition because it was lodged late.

The individual bids in the competitive round ranged from zero to EUR 107,000 (USD 113,174) per MW. The average volume-weighted value was EUR 45,000 per MW.

The Federal Network Agency noted that the power plants that were accepted in the latest round have two more years of operation. During this time, they will continue to ensure the power supply for many households and help relieve the current situation in the energy markets.

Germany's transmission system operators (TSO) are currently examining the status of the six power plants and if any of them is deemed system relevant, it could continue to be available in the grid reserve beyond 2024 in order to ensure the power supply in the country.

(EUR 1 = USD 1.058)

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