After five years of investigation, the European Commission
approved, on November 18, 2025, German financial support of up to
€1.75 billion in favor ofLausitz Energie Kraftwerke AG(LEAG)
under the EU State aid rules. The aid shall compensate LEAG for the
early phase-out of its lignite-fired power plants in the Lusatian
mining area in Eastern Germany, close to the Polish and Czech
borders. The compensation covers both additional costs of the early
closure and forgone profits, which remain to be determined based on
an approved formula.
Teresa Ribera, Executive Vice-President for Clean, Just and
Competitive Transition of the European Commission commented:
"By committing to phase out lignite, Germany is taking an
essential step toward decarbonizing its economy and
supporting the EU's clean transition. This transformation must
be both fair and competitive, and our in-depth assessment shows
that the environmental benefits of the decision clearly surpass any
potential
