Dutch government disclosed its intention to pay Germany's RWE a substantial sum of €331.8 million (approximately $355 million) in compensation. This financial arrangement is in response to the government's decision to limit coal production by companies to 35% of capacity during the period spanning 2022-2024. The primary objective of this cap was to curtail national carbon dioxide emissions.
Energy Minister Rob Jetten communicated this compensation agreement in a letter to the parliament. It's worth noting that the compensation awarded to the three companies operating coal plants in the Netherlands—RWE, Uniper, and privately held Onyx—falls significantly short of the hefty demand for €1.9 billion they had initially put forth.
See also: Dutch Government Allocates Additional 4.9 Billion Euros for Green Hydrogen Production
The reduction of the coal production cap in mid-2022 was a result of efforts to diminish the use of natural gas, driven by geopolitical factors, including Russia's invasion of Ukraine.
Jetten also revealed that compensation for the remaining two companies remains pending, with the Dutch government reserving a total of €730 million for all compensation claims related to this policy shift.
Importantly, the coal plants in question will still be required to cease operations by 2030, as mandated by Dutch law. In a significant development last November, a court dismissed the companies' pleas for additional compensation concerning this eventual shutdown.
