54% of EU coal power is making a loss

By Sophie Chapman
According to a report by Carbon Tracker, more than half of all col power plants in the EU are making a loss, at 54%. The r...

According to a report by Carbon Tracker, more than half of all col power plants in the EU are making a loss, at 54%.

The report, released on 8 December, also states that by 2030, this number will rise to 97%.

Currently, investors are only planning on closing 27% of total coal power plants capacity by 2030, and the report warns that a complete coal phase-out by then could stem utility losses by €22bn (US$26bn).

The price of operating coal is rising due to expected air quality standards and carbon prices, whilst simultaneously clean energy technology costs are continuing to drop.

The report states that by 2024, the building of new onshore wind and solar photovoltaic (PV) projects will be cheaper then operating existing coal plants.

SEE ALSO:

“The changing economics of renewables, as well as air pollution policy and rising carbon prices, has put EU coal power in a death spiral,” commented Matt Gray, Carbon Tracker analyst, and co-author of the report.

“Utilities can’t do much to stop this other than drop coal or lobby governments and hope they will bail them out.”

After Carbon Tracker analysed the profitability of every coal unit in the EU, it discovered that German utilities RWE and Uniper could avoid the loss of €5.3bn ($6.2bn) and €1.7bn ($1.9bn) by closing their plants by 2030.

Germany host the most successful coal plants in the EU, and so could make a total loss of €12bn ($14.1bn).

Poland could avoid losing €2.7bn ($3.1bn) if it closed its plants, whereas Czech Republic could save €2.2bn ($2.5bn), Spain €1.8bn ($2.1bn), and the UK €1.7bn ($1.9bn).

Share

Featured Articles

UK Government awards £54mn in heat network funding

Funding will support the development of schemes in London, Bedfordshire and Woking that use low-carbon heat sources

Shell posts $11.5bn second quarter profit

Shell's earnings fuelled by ongoing price rises and geopolitical instability as the energy major places greater focus on natural gas investments

bp opens first electric truck fast-charging facilities

Operated by bp’s Aral brand, the retail site at Schwegenheim in Rheinland-Pfalz has two 300kw chargers intended for electric trucks

Shell commits to developing Jackdaw gas field in North Sea

Oil & Gas

Prospex Energy raises £1.87m for Selva gas field development

Oil & Gas

Shanghai Electric Group launches low carbon business

Utilities