RWE shuts 20 per cent of its German gas power capacity

• 10 years ago (2013-08-13)
• David Flin

Europe 1061

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RWE, Germany’s second-largest utility, has announced that it is closing almost 20 per cent of its natural gas-fired power capacity in Germany as low demand for electricity made the plants unprofitable. RWE said that it will take a total of 954MW offline until at least the end of next year.

Increased generation from renewable sources and a slump in German power prices has reduced the income from gas-fired plants.

Patrick Hummel, an analyst at UBS, said: “The decision to idle gas capacity does not come as a surprise in an environment of negative spark spreads. RWE will decide on plants mothballing and closures on a case-by-case basis, rather than announcing a massive capacity shutdown at once.”

According to the RWE website, the utility will idle two gas turbines, each with a capacity of 272MW, at its Weisweiler power plant until the end of 2014. The company said that it will place these two units into reserve mode. RWE will also mothball its 410MW Gersteinwerk-F gas plant to the end of 2014, and its 410MW Gersteinwerk-G unit will be offline from April 2014.