Today, the European Commission approved the compensation for RWE Power AG's lignite phase-out under EU State aid rules. The compensation amount of €2.6 billion for the final closure of all lignite-fired power plants of RWE Power AG is thus compatible with the State aid rules and the European internal market.

The Coal-fired Power Termination Act
(Kohleverstromungsbeendigungsgesetz) and the public-law agreement regulate compensation in favour of operators of lignite-fired power plants for the early phase-out of lignite-fired power generation. According to this, RWE Power AG is entitled to compensation of 2.6 billion euros for the final closure of the lignite-fired power plants in the Rhineland. Payment of the compensation amounts specified in the Coal-fired Power Generation Termination Act and the public-law agreement is subject to approval by the European Commission under State aid law. Consequently, the European Commission had opened a so-called formal investigation procedure on 2 March 2021 to examine particularly thoroughly, with the participation of third parties, whether the compensation payment distorts free competition in the European internal market.

With the Act on the Acceleration of the Lignite Phase-out in the Rhenish Coalfield (Gesetz zur Beschleunigung des Braunkohleausstiegs im Rheinischen Revier), which came into force in December 2022, the lignite phase-out in the Rhenish coalfield was brought forward by around 8 years without the compensation amount as such being increased. The Coal-fired Power Termination Act, which was amended in 2022, has been taken into account in the EU Commission's recent State aid decision for RWE of 2 March 2023.

With today's decision of the European Commission, the formal investigation procedure in relation to RWE Power AG has now been closed and brought to a successful conclusion.

The formal investigation procedere with regard to the compensation amount agreed with Lausitz Energie Kraftwerke AG is still ongoing. The German government is in talks with LEAG, the affected federal states and the European Commission to conclude this process as soon as possible as well.