The owner of the 417 MW Cuno Herdecke H6 gas-fired power plant have reversed a decision to mothball the facility.
The Enervie-Statkraft-owned unit in North Rhine Westphalia is to be kept operational to produce power occasionally during hours of tighter supply, according to ICIS website.
The decision was prompted by improvement in market conditions and Cuno will now produce power on the short-term wholesale electricity market when prices are high enough for it to cover operating costs. This running strategy will limit short-term price spikes that could occur when wind and solar power are low.
At the start of the year, Enervie and Statkraft had planned to close the unit after grid operators said they no longer required it for network stabilisation purposes.
Even though German spark spreads, an indicator of profit margins for gas-fired capacity that do not include the cost of carbon, have improved recently, the economic prospect of continuous gas-fired generation remains distant, according to market analysts.
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