FILE PHOTO: The Neurath lignite power plants of German utility RWE is seen during sunset near Grevenbroich, north-west of Cologne, Germany, January 16, 2020. REUTERS/Wolfgang Rattay/File Photo
BERLIN (Reuters) – The German cabinet on Wednesday backed plans to exit coal as an energy source by 2038 at the latest as part of Berlin’s efforts on climate protection, a government spokesman said.
A draft law approved by the cabinet to phase out hard coal-fired power stations envisages maximum phase-out compensation of 165,000 euros ($183,051) per megawatt in 2020, falling to 155,000 euros in 2021 and 2022.
The maximum sum would drop by about 25% annually thereafter before reaching 49,000 euros in 2026. There will be no further compensation after 2026.
Reporting by Markus Wacket; Writing by Paul Carrel; Editing by Thomas Seythal