“Blueprint for a lignite phase-out in Germany”

Phasing out German lignite in the Lusatia region by 2030 can be financed by future owner EPH in a way that avoids a taxpayer-funded lignite bailout, according to a new report by Institute for Energy Economics and Financial Analysis (IEEFA). According to the “Foundation-based framework for phasing out German lignite in Lusatia”, the new Lusatia power-plant owners themselves pay the bill. Liabilities could be paid by EPH – which is taking over the plants from Vattenfall - and directly placed in a foundation. The authors warn that “Vattenfall may have made inadequate provisions against the cost of rehabilitating its former lignite mines.” IEEFA calculates necessary provisions at 2.6 billion euros as opposed to the utility’s 1.4 billion euros, and advises the German government to commission its own estimate.

Find a summary and the full report in English here.