Bandwagon Effect: Now Gas Industry Also Calls For Government Subsidies
Eon, the German utility, has called on European governments to help operators of gas-fired power plants, who are suffering losses because wholesale prices have plummeted as renewable electricity generation has surged.
“Policy makers need to act swiftly on this issue. Otherwise we are going to have to shut down power plants,” said Johannes Teyssen, Eon chief executive, stressing that gas-fired plants could guarantee supply even on cloudy and windless days.
Eon shocked investors in recent weeks when it warned that developments in the European power market would erode profit this year. The company said last autumn it was considering the closure of at least one gas-fired plant in Germany.