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Europe: ‘Capacity Payments’ Provide a Lifeline to Costly Coal-Fired Generators

Europe: ‘Capacity Payments’ Provide a Lifeline to Costly Coal-Fired Generators

U.K. Case in Point: Subsidies Prop Up Increasingly Unviable Generators 


Call them what you will but “capacity payments” in the European utility industry today are looking more and more like subsidies to prop up a fading industry threatened by the rise of renewables. It’s an expensive arrangement that often rewards decrepit coal- and other fossil-fuel-fired power plants for waiting in the wings—not for generating electricity. […]

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