Statkraft Follows RWE and E.ON, Closes Gas-Fired Power Plants in Germany

Norway’s Statkraft confirmed that falling wholesale electricity prices impacts on gas-fired power plants in Central Europe, saying on Thursday that it will close two gas-fired power plants in Germany.

“Short-term power prices have continued to fall, worsening the margin between power and gas prices,” said Yngve Froeshaug, Statkraft’s vice-president. 

Wholesale prices in Germany decreased by 20% in the first six months of 2013. 

“Due to this, our gas power plants in Knapsack and Herdecke for the time being are out of production,” Froeshaug added.

Similarly, E.ON does not see any recovery for its gas division in Europe, planning “unavoidable” closures, unless drastic changes in the business environment.

In the last few days, RWE announced its plan to take power stations offline, advocating that the continuing boom in solar energy makes many European stations unprofitable.