RWE Ceases Operations of Five Power Plant Units as Coal Phase-Out Progresses

Germany's energy giant RWE revealed plans to permanently decommission five power plant units in the Rhenish mining area by the month's end, marking a significant step in its commitment to phase out coal-fired power in its energy portfolio by 2030. This move will entail the shutdown of 2.1 gigawatts (GW) of lignite capacity, a form of low-grade coal primarily utilized in electricity generation.

The affected units are situated at the Grevenbroich-Neurath and Bergheim-Niederaussem sites in the Rhineland. Originally, these units received a temporary extension of their operational life from the German Government to bolster the nation's power supply during the 2022 European energy crisis. However, with the recovery of the continent's gas market, the necessity for backup supply has diminished, prompting RWE's decision to close these units, as stated in a press release.

In alignment with its decarbonization strategies, RWE has already retired 12 lignite-fired power plant units with a combined capacity of 4.2 GW since late 2020. Additionally, the production of briquettes, a type of compressed coal dust or peat used as fuel, ceased at the end of 2022, resulting in the removal of 120 megawatts (MW) of fossil fuel capacity from Germany's power grid.

RWE Power CEO Frank Weigand emphasized the company's commitment to preparing for the coal phase-out and subsequent land restoration, stating, Furthermore, our emphasis in the upcoming years will persist on ensuring the dependable functioning of our existing power plant units, alongside preparing for the coal phase-out and concluding recultivation efforts.

Furthermore, RWE disclosed plans to close the 300 MW Block F unit at the Weisweiler power plant by the end of the current year. This action will reduce the number of operational coal units in the region from 20 to seven by 2025, effectively halving the lignite capacity in the Rhineland compared to its original level. The company also outlined intentions for further closures in the coming years.

In a parallel effort to its coal phase-out strategy, RWE has made substantial commitments to increase investments in renewable energy sources. In November, the company unveiled plans to invest €55 billion ($60.42 billion) in green energy projects globally between 2024 and 2030. It aims to expand its green portfolio from the existing 35 GW achieved since 2021 to over 65 GW by 2030.

Specifically in Germany, RWE intends to allocate up to €11 billion to renewables, including offshore and onshore wind power, solar energy, storage solutions, flexible backup capacities, and hydrogen production by the end of the decade.