The European Commission has approved a German support measure of up to €1.75bn to compensate the German energy producer Lausitz Energie Kraftwerke AG (LEAG) for the early phase-out of its lignite-fired power plants in the Lusatian mining area (eastern Germany) by 2038 (EU Commission press release, 18/11/2025). The company has agreed to shut down its installations in Saxony and Brandenburg by 2038.
The German government agreed with its main producers of lignite-fired electricity (LEAG and RWE) the early closure of their lignite-fired power plants for a compensation of €4.35bn (€1.75bn for LEAG and €2.6bn for RWE). The EU Commission approved the aid to RWE in 2023.
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