The German energy industry association, BDEW, says that 43 per cent or 32 of the power plants planned for construction in Germany may never come to fruition, due to lack of economic viability.
The association’s managing director said: “Unless there is clarity very soon about the future structure of the market and a relevant capacity market model, the situation for power stations will result in a serious problem for as an industrial location.”
The association says a combination of a lack of clarity about the future structure of energy markets and the lack of profitability for coal- and gas-fired power stations because of competing energy supplies from subsidised renewable power had severely undermined investor confidence.
BDEW said that a year ago, it had only questioned the economic viability of 22 long-term projects and warned that the situation had regressed to the point that unless action was taken to encourage the construction of more power stations to ensure stable supply, energy security issues were inevitable.
The report from BDEW was issued on the first day of the Hanover Trade Fair, when the body traditionally prescribes its solutions for a more effective German energy policy.
It warned that if current plant closure plans were added up with cancellations of new construction, some 13,600 MW of so-called secure load, that runs 24 hours, would be shut by 2022.
Source Power Engineering 4 April 2014 by Diarmaid Williams.