Vattenfall to be Compensated for Moorburg Power Plant
The German Federal Network Agency Bundesnetzagentur has decided to award compensation for a complete phase-out of Vattenfall’s coal-fired power plant Moorburg in Hamburg. This means that Moorburg can be phased out earlier than previously planned. The bid for an early closure of Moorburg was part of the first auction process to reduce coal-fired power generation in Germany, which started earlier this year. Companies that are operating coal-fired power plants in Northern Germany were asked to hand in their bids for a total of four gigawatts of capacity to be phased out.
In a next step, the German transmission system operators will decide by early March 2021 on the systemic importance of Moorburg. If Moorburg is not classified as system relevant, the firing of coal will be stopped at the latest on July 1, 2021. If Moorburg is classified as relevant by the regional transmission system operator, and the German Federal Network Agency confirms this assessment, the power plant will have to be kept in reserve for a period to be determined.
In line with the purpose of the coal phase-out law, companies participating in the auctions should not disclose the compensation amounts as those are sensitive information in a competitive market.