“Based on the legislation adopted by Germany, we do not see how the Commission could conclude that this measure complies with its own State aid rules.”
“We will need to see the published decision before understanding how the Commission reached its conclusions. But these rules are crucial to ensuring a level playing field, for the benefit of consumers and a clear path towards a cleaner energy system.”
The capacity mechanism, which ClientEarth said is effectively a gas subsidy plan, will cost anywhere between estimates of €15.6 billion (US$18.11 billion) and €35.2 billion. Initial costs of the first auction are expected to be around €1 billion to €3 billion, with annual costs in future auctions for 2032 to 2045 years ranging from €900 million to €2.3 billion.
“Sinking up to €35.2 billion into new gas generation takes a woeful step in the wrong direction, towards worsening climate effects and rising costs for consumers, who will be paying for these plants until 2045, the same year they are finally supposed to be climate neutral,” Nieuwbourg said.
Transmission system operators (TSOs) will remunerate capacity required to meet the reliability standard that ensures security of electricity supply.
