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EU Clears Up to €1.75 Billion in German Aid to Leag for Lignite Phase-Out

Brussels judged the package proportionate under state-aid rules to secure closure of still-profitable plants.

Overview

  • Germany may compensate Leag with up to €1.75 billion for the coal exit in Lusatia following the Commission’s approval on November 18, 2025.
  • About €1.2 billion is fixed for mine renaturation and agreed social arrangements regardless of the exact shutdown schedule.
  • Up to €550 million is conditional on demonstrated foregone profits if plants would have been profitable beyond statutory closure dates.
  • The decision follows a multi-year review after Germany’s 2021 notification and completes the two-operator scheme alongside the €2.6 billion approved for RWE in 2023.
  • Leag plans to begin plant closures from 2028 and aims to keep the final statutory exit date of 2038, leaving future lost-profit calculations uncertain.