Many thermal power stations could cease to be profitable as early as 2025

According to a study by ENTSO-E, the European association of grid operators, the profitability of many thermal power stations could be threatened as early as 2025. 37,800 MW of coal, lignite, heavy fuel oil and gas plants would cease to be competitive, leading to their outright closure or mothballing. The scenario studied by ENTSO-E is an ‘energy only’ scenario in which the power stations receive no remuneration for the capacity made available. The study calls for a reform of the internal electricity market in view of the increased development of intermittent renewable energies, and for mechanisms to be put in place to remunerate the provision of capacity when supply is lower than demand, for example at night or when there is little wind. In the absence of such mechanisms, security of supply in Europe could be threatened. Some countries are in a particularly critical situation in this respect, such as Italy, Poland, Bulgaria, Spain and the Czech Republic.