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Verbund shuts five power plants

Staff reporter · 14 May 2014, 15:22

Published: 14 May 2014 15:22 GMT+02:00

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The company said it would temporarily decommission several combined cycle gas-fired power plants in Austria and France, including the 848-megawatt Mellach power station that was commissioned only three years ago.

Additionally, a coal-fired power plant in Dürnrohr and an oil-fueled plant in Styria will be closed, the company added.

The reason for the closures is the "massive disruption in the European electricity market" and "sector-wide economic pressures", Verbund said. It hopes the restructuring will lead to "lasting economic improvements".

Some 100 workers are employed in the Austrian plants - 80 of those in Dürnrohr.

Verbund boss Wolfgang Anzengruber told the Austrian Press Agency that he thought around half of the affected employees could be redeployed in other parts of the business.

Gas power plants in Europe are currently generally unprofitable, and German energy companies have already announced closures for scores of power plants.

Across Europe subsidized renewable energies are making industrial-scale power plants less profitable.

Staff reporter (news@thelocal.com)

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