The European Commission (EC) approved €52.5 million in compensation for the early closure of the Hemweg coal-fired power plant in the Netherlands, the EC announced Wednesday.
The Commission said the measure would contribute to reducing CO2 without unduly distorting competition in the EU's single market.
It noted that Hemweg emitted around 3.6 megatons of CO2 annually, and concluded the payment adequately compensates the plant for the profits it would have been able to make if it continued to operate.
The Netherlands adopted a law on Dec. 11 last year prohibiting the use of coal for the production of electricity from Jan. 1, 2030 at the latest.
While four other coal-fired power plants were granted a transition period of five to ten years, the Hemweg plant had to close before Jan. 1, 2020.
The EC said this resulted in commercial losses for the company running the plant and therefore the law gave Hemweg the possibility of requesting compensation for its early closure.
The Hemweg plant is Swedish Vattenfall's last coalfired power plant in the Netherlands. It was inaugurated in 1994 and has an installed capacity for electricity generation of 650 megawatts.
By Ebru Sengul Cevrioglu