Headlines | News EC approves Uniper stabilisation Germany Financial


Following Uniper’s extraordinary general meeting on 19 December to authorise a framework agreement over proposals for stabilisation and to create a viable way forward for the company, the EU Commission has granted approval of the following measures under its state aid law. The stabilisation measures will be implemented immediately. Broadly, the remedies approved include the divestment of various interests including the company’s stake in Unipro, as well as individual company shareholdings and individual conventional generation assets: and there is a number of structural remedies that Uniper must fulfil. The following divestments of assets must be completed at the latest by the end of 2026:


Its 84% stake in the Unipro business, in Russia;


Hard-coal-fired power plant in Datteln, Germany;


Its district heating business in Germany; The North America power business, excluding the gas portfolio, LNG and hydrogen-related capabilities; The marine fuels business Uniper Energy DMCC, Middle East,:


The gas-fired power plant in Gönyu, Hungary;


Its 20% stake in the OPAL pipeline; Its 20% indirect stake in the BBL pipeline; The 18% stake in the gas company Latvijas Gaze, Latvia;


Its international helium business. Uniper has also committed itself to a number of market-opening remedies, such as the obligation not to expand its market position in sales, to adjust its long-term gas contract portfolio, and to grant competitors access to transport and storage capacities. Until the end of 2026, Uniper may also only make acquisitions that are necessary to ensure the continued viability of the company or to


drive the decarbonisation of Uniper’s business. Acquisitions would be subject to approval by the EU Commission.


In addition to all the above, the arbitration claim against the Netherlands, which is based on the Energy Charter Treaty, must be withdrawn.


EU approval is founded on the logic that Uniper will make a contribution of 30% per year from its adjusted earnings before interest and taxes, excluding losses from gas replacement costs, between 2022 and 2024. If, at the end of 2024, Uniper’s equity capitalisation is higher than before the crisis, it will be obliged to repay the excess amount to the German Federal government by appropriate means.


As part of the Commission’s approval agreement, the German Federal government agreed to reduce its shareholding in Uniper to a maximum of 25% plus one share by 2028 at the latest.


Uniper extends operation of Heyden 4 and Staudinger 5 Germany Coal power


Uniper is extending the market operation of the Heyden 4 and Staudinger 5 hard coal-fired power plants, a measure effective until 31 March 2024 at the latest.. The measure is being taken as part of the German government’s Substitute Power Plant Provision Act (EKBG) to secure the energy supply in the coming winters. This law pursues the goal of using as little gas as possible for power generation and replacing it with other energy sources.


The 875 MW Heyden 4 power plant in Petershagen near Minden had already


ceased commercial operation after an award in the first tender to reduce coal-fired power generation, but returned to the market in August from the grid reserve on the basis of the EKBG and the associated first ordinance. This first ordinance only allowed a return to the market until 30 April 2023. Now this term has been extended and continued operation is allowed until 31 March 2024. The 510 MW Staudinger 5 hard coal-fired power plant near Hanau would have had to cease commercial operation on 21 May 2023 but instead of being used only in the grid reserve from 22 May, it is now going to


remain on the market, also on the basis of the EKBG.


Both power plants will be used commercially to support the security of energy supply in Germany. Uniper is currently preparing for the continued operation of the 345 MW Scholven B hard coal-fired power plant in Gelsenkirchen beyond June 2023. With Heyden 4, Scholven C, Irsching 3 (415 MW) and Staudinger 5 in operation Uniper will have brought around 2150 MW of capacity back into the German electricity market to reduce gas consumption during the current shortage.


Deepening rift between Green Party and climate movement


Germany Climate change Online news agency Clean Energy Wire reports that the leadership of Germany’s Green Party has faced broad criticism from the climate movement for agreeing to the demolition of the village of Lützerath to expand a neighbouring mine, as part of a larger deal to exit coal in western Germany by 2030. Green politicians argue that bringing forward the coal phase-out in North Rhine-Westphalia to 2030 is a major climate success, but activists say that the village


could have been saved, even when considering supply security in the energy crisis. Many are threatening to abandon support for the party, applying pressure on Green Party politicians to more seriously account for the demands of those who have backed the party until now. The small western German village of Lützerath has become a target for climate activists. Given Germany’s aims to quit coal ‘ideally’ by 2030 and to reach climate neutrality by 2045, the fate of Lützerath is hotly


contested. Several reports question the need to demolish the abandoned village, which has been occupied by climate activists, to guarantee supply security. Others, with an eye on the energy crisis, have supported the government’s push to bring coal plants back online and extend the lifespan of others. Tensions in Lützerath have been rising in early 2023, as police were set to vacate several hundred activists from the village by mid- January.


www.modernpowersystems.com | January/February 2023 | 5


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