Renewables Keep Wolf From German Utilities' Poor

摘要

The near-impossibility of making a profit running power stations in Northwest Europe on coal, lignite or natural gas was starkly underlined in annual results released by Germany's two biggest utilities last week. E.On lost ?3.16 billion ($3.4 billion) in 2014-the biggest annual loss ever recorded by a German utility - courtesy of ?5.5 billion of impairments, while RWE said its recurrent net income crashed 45% to ?1.3 billion. Both utilities blame fossil fuel power generation in Europe. E.On already announced late last year it was exiting the traditional generation business, while RWE Chief Executive Peter Terium said the economic conditions facing coal- and gas-fired power stations are "extremely grave" and "got worse rather than better" over the year (WGI Dec.3'14). Terium said RWE will make an operating loss in the "not too distant future" if wholesale electricity prices remain around current levels of ?32 ($34) per megawatt hour -- but prospects don't look bright, with Deutsche Bank analysts saying the "prognosis for German baseload power remains poor."