German Power Generators Split Over State Payments to Plants

Utilities operating in Germany are divided over whether the government should pay generators to keep uneconomic power plants open to ensure supply can meet peak demand.

Vattenfall AB, the third-biggest utility operating in Germany, says that stability of power supply is not an issue and the market is so oversupplied that so-called capacity payments aren’t necessary. Statkraft AS, whose power output from German gas-fed plants fell 50 percent last year, said the nation will need to build new plants by 2019 if action isn’t taken to keep existing facilities online.