E.ON’s Bavarian gas power plant to remain open

News is emerging from Germany that the Irsching gas power plant in Bavaria will not now be mothballed as has been the trend on the continent in recent times.

Reuters reports sources as saying that regulators and politicians have come to an agreement which will see the plant continue in a reserve power capacity.
Irsching power plant
Owners E.ON (FWB: EOAN) had said it could close the plant because of high gas buying-in prices and low wholesale power prices. But the energy network regulator believes the plant is crucial to the stability of the power grid in the industry-heavy region.

The deal, which would see the plant guaranteed income as a back-up source of electricity, could be a precedent for how Germany ensures the survival of conventional power, whose profitability has been hit by a boom in subsidised renewable energy as the country phases out nuclear power.

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