Report: Profit of German Lignite Plants Collapses

Are Germany's lignite plants now worthless?

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? This report gives evidence that lignite profits have collapsed very recently. It shows:  The gross profit of the German lignite fleet collapsed by 54% in the first half of 2019, according to our modelling using out-turn power prices. Their gross profit – before any fixed costs are taken into consideration – fell to... ... More: Official Press Release Sandbag

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Germany, Sandbag, report, cash cow, lignite, coal, worthless, coal exit, profit, renewables