In December 2020, Germany notified to the Commission a Compensation Agreement regarding the early closure of lignite-fired power plants. The Agreement foresaw a total compensation of €4.35 billion, of which €2.6 billion was awarded to RWE Power AG (RWE) in the Rhineland and €1.75 billion to Lausitz Energie Kraftwerke AG (LEAG) for lignite-fired power plants in the Lausitz. Preceding this notification, in September 2020, the Commission had received a complaint alleging that unlawful aid to these two companies had been granted with the signature of a Compensation Agreement.
The Commission opened a formal investigation regarding this compensation in March 2021. By December 2022, Germany proposed a revised calculation method for RWE's forgone profits to justify the €2.6 billion compensation.
The Commission has found the measure in favour of RWE to be compatible with EU state aid rules. On the basis of the guidance provided by the Guidelines on state aid for climate, environmental protection and energy, the Commission considers the measure to be necessary, appropriate and proportionate.
This decision does not pertain to the Commission's ongoing formal investigation regarding the €1.75 billion compensation measure in favour of LEAG.
For further information: see the Commission’s Press Release.