German power utilities - caught in the CO2 trap?

This study evaluates investment risks of the four major electricity utilities in Germany. Fuel prices and climate policies are the prevailing factors to determine the performance of the utilities in future. The four big German electricity utilities (EnBW, E.On, RWE, Vattenfall) are stuck in an investment dilemma, since investments into large fossil-fired power plants don't pay off for numerous constellations. Against prevailing opinions the study concludes that in many cases ambitious climate policy and high CO2 prices could result in profitable investments for them. Considering the official support, investments into renewable energies appear to be a promising and low risk option. 

The study is a cooperation project of the WestLB bank and the research project "Climate-Mainstreaming" whose partners are Germanwatch, Potsdam Institute for Climate Impact Research, University of Potsdam, Wuppertal Institute for Climate, Environment and Energy, German Institute for Economic Research as well as the European Climate Forum.

Documents:

• Study: Executive Summary [PDF, 1.5 MB]
• Study: Full Version [PDF, 3.1 MB]
• Press release (08/09/2009)