Norwegian power firm Statkraft is shutting down its 430 MW gas plant in the German city of Emden, it said, adding it would cut jobs and refrain from building a new plant at the location.

“Currently, the market does not send any signals that would suggest additional gas plant capacities are needed in Germany,” Juergen Tzschoppe, Statkraft’s managing director for Germany, was quoted as saying in a statement by Reuters.

“The financial crisis has led to a decline in demand for electricity. In addition, spot prices for gas are high while power prices are low; a clear signal for production overcapacities in Europe.”

State-owned Statkraft is Europe’s largest producer of renewable energy including hydro power, which provides nearly all of Norway’s electricity.

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