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ENERGY

Energy giant warns of ‘significant’ job losses over Germany’s coal phase out

There will be "significant" job losses as Germany phases out coal use by 2038 as part of efforts to combat climate change, energy giant RWE's CEO Rolf Martin warned on Monday.

Energy giant warns of 'significant' job losses over Germany's coal phase out
A stop sign outside a coal power station in Voerde, North Rhine-Westphalia. Photo: DPA

“We can't exactly say yet how many employees will be affected,” Martin told the Rheinische Post newspaper.

“But I expect a significant reduction as soon as 2023, which goes far beyond current planning and what can be done through normal fluctuations.”

SEE ALSO: Germany should phase out coal  mining by 2038: Commission 

A government-appointed coal commission on Saturday set a 2038 deadline for Germany to shutter coal mines and electricity plants powered by black or brown coal.

It also recommended some €40 billion euros be set aside to help coal-reliant regions with the transition, including through retraining younger workers and early retirement schemes for others.

Energy companies can also expect billions in compensation.

Coal, the dirtiest of all fossil fuels, last year accounted for more than 30 percent of Germany's energy mix.

RWE, the biggest operator of coal-fired plants in Germany, has for years nbeen warning of the negative impact the exit from coal would have on jobs and energy security in Germany.

Some 20,000 people are directly employed in the coal industry in Europe's top economy.

It is now up to the German government to implement the commission's recommendations.

A meeting between Chancellor Angela Merkel, Finance Minister Olaf Scholz and regional leaders to discuss the proposals is scheduled to take place on Thursday.

Germany's reliance on dirty coal is in part down to Merkel's decision in the wake of the 2011 Fukushima disaster to ditch nuclear power by 2022.

But the use of the polluting fuel has complicated Germany's efforts to stick to targets for limiting greenhouse gas emissions, undermining Merkel's role as a leading advocate of the global Paris Climate Agreement.

Under the commission's plans, power plants in Germany using lignite or brown coal, which is even more polluting than black coal, would be closed by 2022.

Other plants will follow until 2030, when only 17 gigawatts of Germany's electricity will be supplied by coal, compared to today's 45 gigawatts.

The last plant will close in 2038 at the latest, the commission said, but it did not rule out moving this date forward to 2035 if conditions permit.

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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