A report by the Carbon Tracker Initiative has revealed 79% of EU coal plants are running at a high financial loss because they can't compete with cheap renewables. A German company faces the biggest loss.
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The majority of coal plants in the European Union (EU) are unprofitable and could face losses of nearly €6.6 billion ($7.3 billion) this year, the Carbon Tracker Initiative reported on Thursday.
The London-based think tank analyzed the numbers behind every coal plant in the EU, concluding that 79% of the electricity-generating power stations are running at a loss.
"EU coal generators are hemorrhaging cash because they cannot compete with cheap renewables and gas and this will only get worse," said Matt Gray, co-author of the report.
Lower costs for renewable energy and natural gas are increasingly competitive versus coal in electricity production.
Hard coal generation had fallen 39% this year from the year prior.
"The numbers and assumptions do not stand up to the facts. They are wrong and cannot form the basis for a serious assessment," an RWE spokesman said. "If plants were not covering their cash costs we would not run them," the spokesman said.
The report also said the Central European energy group EPH, which has assets mainly in Germany and the Czech Republic, could lose €613 million, and PPC in Greece could lose €596 million.
Higher spending on technology is necessary to meet stricter EU air quality standards from 2021. The report also noted rising carbon permit prices could boost spending.
Several countries such as Poland still depend on coal for the majority of their power generation.
Some coal plant operators argue coal is here to stay for several decades to come because renewable energy is intermittent and not a stable supplier of energy.
After more than 150 years, the industrial mining of black coal in Germany is coming to an end with the closure of the Prosper-Haniel mine in Bottrop. It marks the sad finish to an era of black gold in the Ruhr Valley.
Image: picture-alliance/dpa/J. Stratenschulte
The last shift
This will be a melancholy and nostalgic Christmas for the people of Bottrop, especially for the last coal miners and their families. Three days before Christmas Eve, the Prosper-Haniel coal mine — the last black coal mine in Germany — is set to close. German President Frank-Walter Steinmeier was gifted the last piece of "black gold" to be brought up and see the light of day.
Image: picture-alliance/dpa/C. Seidel
Black gold
The coal was initially stored outside for days, like here with the Prosper-Haniel tower in the background. Then it was usually taken by train to the nearest port where it was loaded onto barges or ships to be taken to consumers; a large portion of it was shipped overseas. German hard coal was in demand worldwide for its quality, as long as the price was right.
Image: picture-alliance/dpa/R. Weihrauch
Holding together proudly
The work in the coal mine was not only well paid, the miners were also held in high esteem. Their dirty, exhausting and dangerous work welded the miners together. Even now, they all call one another mate ("kumpel"). Their solidarity and camaraderie were always a reason for professional pride as can be seen here in this photo taken in Bottrop's Prosper-Haniel mine.
Image: picture-alliance/dpa/F. Heyder
Working and living
The miner operators built housing for the miners in the immediate vicinity of the pits. In the gardens, workers often kept chickens and pigs. Sometimes they'd even find room for a pigeon coop. Meanwhile, these houses have become very popular. Having a garden in the city is no small luxury.
Image: picture-alliance/dpa/Schulte
Mates from Anatolia
After World War II, many so-called guest workers from southern Europe and Turkey came to work in the mines alongside colleagues from Silesia and Masuria, both in today's Poland. Many of them decided to stay.
Image: picture-alliance/dpa
The first cracks
The 1950s and 60s were the highpoint of the Ruhr mining industry. And yet, the first cracks in the mining business model were becoming apparent. The coal, which was initially near the surface, soon had to be dug out deeper and deeper — up to 1,500 meters underground. That was very expensive and German coal gradually became less competitive on the international market.
Image: picture-alliance/KPA
Bad for the environment
For decades the Ruhr area was notorious for its bad air. If you lived near a coking plant, freshly laundered sheets would turn dirty if you hung them out on the washing line. The image here depicts a skyline of coal, smokestacks, and smoke in Oberhausen — not far from Bottrop. Today, few people in the area miss these consequences of the coal business.
Image: Getty Images/L. Schulze
Unstable ground
Even after coal mining is discontinued, it will continue to play an important role in the lives of the people of Ruhr Valley. Time and again, the earth opens up and houses, roads or railway lines are badly damaged by the notoriously unstable ground.
Image: Imago/J. Tack
The work is never done
In the last 150 years, the Ruhr area has sunk in places by up to 25 meters (82 feet). Without intervention, the groundwater would rise again, transforming the area into a huge lake. So the water has to be pumped out — continuously. This legacy is sometimes referred to as an "eternal cost" for the more-than-five million people who live in the Ruhr area.
Image: Imago/blickwinkel
What will remain?
The omnipresent mining towers have now been demolished for the most part. Huge areas of the former complexes have been made green. Many former industrial monuments — and there are plenty of them — have been transformed into amusement parks — the best example being the Zollverein in Essen, which is now a UNESCO World Heritage Site.
Image: Guntram Walter
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Coal plants with profits
There are, however, some coal plants across the EU that are expected to turn a profit. They include facilities that receive high subsidies in Poland and efficient utilities in Germany and the Netherlands. Some plants in Italy, the Czech Republic and Slovenia can take advantage of high wholesale power prices.