Coal, New Projects

RWE cancels 800 MW coal plant in Poland due to carbon costs

9 September 2010 – German utility RWE has cancelled the construction of the proposed 800 MW, EUR1.5bn ($1.9bn) Czeczott coal fired power plant near Katowice in southern Poland, as the cost of carbon permits make it financially unviable.
RWE, which had already started preparations for the plant, would be forced to buy all European Union Emissions Trading Scheme permits for the station at auctions from 2013, adding to production costs, according to ICIS Heren, reported Bloomberg. RWE owns 75 per cent of the venture and Kompania Weglowa holds the rest.
The Polish electricity market will struggle to meet demand from 2013 through 2015, ICIS Heren said.