EU Energy Policy

EU battle over coal capacity payments heats up

National capacity payments for coal-fired power plants could continue at least until 2035 if some EU member states get their way National capacity payments for coal-fired power plants could continue at least until 2035 if some EU member states get their way.
By Andreas Walstad 14 September 2018 0 32543
Poland's Patnow coal-fired power plant A coal-fired power plant in Poland. (Zepak)

The EU institutions began negotiations this week on the future framework for capacity payments in the electricity sector. These will ultimately determine how long EU nations will be able to subsidise coal-fired power plants. 

The European Commission and the European Parliament want the EU to phase out capacity payments – which are effectively national subsidies – for both new and existing coal-fired plants by 2025. However, some countries in the Council of the EU want payments for existing coal-fired plants to continue until...