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E.ON may be forced to close gas power plant

E.ON (FWB:à‚ EOAN) is considering the closure of one of its most modern gas power plants as it continues to contend with falling demand for energy in recession-hit Europe.

The company is to decide on the closure of its 415 MW Irsching power station in Bavaria in March and other plants could follow.
Irsching gas power plant
In a statement this week Germany’s largest utility said it would have to sell more assets to cope with the harsh economic conditions.

They are projecting a sharp drop in profits this year and forecast “underlying” net income of between $2.9bn and $3.5bn for 2013, down from $5.8bn it managed in 2012.

Coal and gas-fired power plants have become “largely uneconomic to operate”, especially due to the speedy growth of renewable energy sources, the company noted.

E.ON chief executive Johannes Teyssen was quoted by Financial Times as saying that “We can’t just continue operating conventional plants in the hope something will change.”

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