The EU on Tuesday said it was taking a closer look into billions of euros in aid promised by Germany to firms hit by the closure of coal-fired power plants, over concerns it may give them an unfair advantage.

"Our role is to safeguard competition by making sure that the compensation granted to the operators ... is kept to the minimum necessary," EU competition chief Margrethe Vestager said in a statement.

"The information currently at our disposal does not allow us to confirm this with certainty, and we will now investigate this further," she added.

Germany has embarked on a plan to phase out coal as a source of electricity by 2038 and has promised 4.35 billion euros in aid to operators RWE and LEAG for lost profits.

The EU executive noted that "at this stage" the "preliminary view is that the German measure is likely to constitute state aid".

Despite a green reputation abroad, Germany remains heavily reliant on dirty coal, partly because of a decision to abandon nuclear energy after the 2011 Fukushima disaster.

In the third quarter of 2020, just over half of the electricity produced in Europe's top economy came from non-renewables, with coal alone accounting for 26 percent.

Climate activists have urged the government to speed up Germany's coal exit, saying the current timetable is not ambitious enough.

arp/dc/kjl

RWE

Related Links
Surviving the Pits

Tweet

Thanks for being here; We need your help. The Space Media Network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceMediaNetwork Contributor $5 Billed Once credit card or paypal		SpaceMediaNetwork Monthly Supporter $5 Billed Monthly paypal only

Spanish bank Santander to end coal sector support
Madrid (AFP) Feb 22, 2021
Spanish banking giant Santander said Monday it would stop doing business with companies most exposed to coal mining by 2030 as part of its efforts to fight climate change. Santander will cut all exposure to thermal coal mining and stop providing services to power generation clients that earn more than 10 percent of their revenues from thermal coal, a statement said. "Climate change is a global emergency," the statement quoted Santander chairman Ana Botin as saying. "As one of the world's lar ... read more