EU allows Germany tax exemptions for new gas-fired power plants

The EU has allowed Germany five-year tax exemptions for new gas-fired power plants, said environment minister Juergen Trittin. The move is expected to encourage new environmentally friendly and efficient power plant projects as well as attract new players into the market.
"This is another important building block in our energy policy," said the Green Party politician. "This will be good for competition, promote innovation and keep a lid on the cost of environmentally sound power generation," he said.

The EU decision is expected to give the green light to a number of utilities planning large combined cycle gas turbine (CCGT) plants which cab achieve much higher levels of efficiency than other plants and which can be constructed and operational more quickly. Trittin said the efficiency rate for CCGTs was more than 57 % versus the 35 % achieved by nuclear facilities and 40 % by coal plants.
Hamburg-based Concord Power plans to build a 2,000 MW block CCGT at Lubmin near Greifswald in easternGermany and another project near Cologne. He added the decision also went some way towards correcting the disadvantage of German gas-to-power taxes being higher than those in other EU countries in the first place.