Irsching, Germany (dpa) – An ultra-modern gas power plant in Bavaria
will be shut down as unprofitable just six years after it went
online, the operators announced Monday.

The Irsching plant will be disconnected from the German electricity
grid on April 1, 2016, according to a statement from operators Eon
and distributors Mainova, N-Ergie and HSE.

The background to the decision was “the lack of prospects for a
commercial operation” after the current contract with the grid
operator runs out, the statement said.

The companies have threatened legal action as a last resort if the
Federal Grid Agency objects to the planned closure, increasing the
pressure on the government‘s current energy policies and its ability
to secure the cost-effectiveness of modern power stations.

Part of the Irsching plant went online in 2010 with a generating
capacity of 846 megawatts. The final section of the plant went online
in 2011, offering a further 550-megawatt capacity. The plant is
considered one of the most efficient and modern in Europe.

However, gas plants have especially come under pressure given the
German government‘s policy of switching to sustainable energy sources
and the collapse in energy prices on the open market.

“The increasing amounts of subsidized energy from renewable sources
and the low wholesale price for electricity do not allow for a stake
in the market any more,” the four companies said in their statement.

“In the whole of 2014, the power station produced no energy at any
time for the market.”

Irsching was only used to stabilize the grid last year, for which the
operators received “contractually agreed compensation” that was just
enough to cover their costs.

Once the current contract ends, the gas plant will have to earn its
costs entirely on the open market, for which the prospects were
non-existent, the companies said.

“In order to stay out of the red, the owners see no alternative but
to announce the [plant‘s] closure.”

German Economy Minister Sigmar Gabriel has already said that the Grid
Agency would object to the closure if it felt that Irsching was
important for the stability of the electricity grid, in which case
the plant would fall under the so-called ‘reserve power station
provision.‘

The operators are not willing to accept the provision as it is
intended for older power stations and does not recognize the
“fundamental cost factors” of newer facilities.

“A commercial operation on the basis of this provision is therefore
not possible. The owners would be forced to operate their facilities
without being able to cover their costs, which is why they are
reserving the right to pursue the legal path if there is an objection
to the closure,” the statement said.

The four companies have asked the politicians to change the provision
so that the costs of more modern power stations can be covered.