To pay or not to pay? The EU has to decide on payments to coal-fired plants

The EU has been aiming for a decarbonization of the environment and a green energy transition. However, the reality is that the EU is still dependant on non-renewable resources like coal. Renewable resources such as wind and solar power are highly dependent on weather and season conditions. Therefore, other sources are needed for energy security reasons such as coal and gas. The issue is that the EU has been giving subsidies to coal-fired plants, and now, it has been questioned if these subsidies should continue to be provided. Moreover, gas companies could be benefiting from this decision. The European Commission has made a proposal to limit payments only to generators
emitting fewer than 550 grams of carbon dioxide per kilowatt hour. This implies that coal plants would be eliminated, which will only leave the option for gas. The proposal has provoked different positions on Member States and marked the beginning of a lobbying campaign from Euroelectric, opposing the 550 rule as it could lead to additional costs up to €50 billion; and the main gas and renewable energy-focused companies and associations that could benefit from the 550 rule.

In conclusion, this proposal has created a debate within the institutions that will be solved with the decision of the Parliament and the Council and that will be crucial settle the path towards a green economy transition.

Please find here the complete news about this issue (page 32).