Noerr Advises German Ministry on Contract Amendments and Compensation Scheme for LEAG

"Noerr advised the German Federal Ministry for Economic Affairs and Energy in negotiations to amend a public-law contract with Lausitz Energie Kraftwerke AG (LEAG). The contract, signed today alongside amendments to the Coal-fired Power Generation Termination Act, secured European Commission approval of a compensation scheme for LEAG’s exit from the lignite business and paves the way for up to €1.75 billion in State aid."

Noerr advised the German Federal Ministry for Economic Affairs and Energy in negotiations to amend a public-law contract with power plant operator Lausitz Energie Kraftwerke AG (LEAG). The transaction comprised negotiations to revise and sign a public-law contract between the Ministry and LEAG. The contract, signed today, together with the German Coal-fired Power Generation Termination Act (Kohleverstromungsbeendigungsgesetz), constituted the conditions for the European Commission’s approval of a compensation scheme enabling LEAG’s exit from the lignite (brown coal) business. With Commission approval obtained, the path is open for payment of up to €1.75 billion in State aid. The Bundestag had previously adopted the necessary changes to the Termination Act and approved amendments to the public-law contract with LEAG. Noerr represented the German Federal Ministry for Economic Affairs and Energy with a team composed by: Holger Schmitz (Partner, Regulatory, Berlin); Tibor Fedke (Partner, Corporate, Berlin); Carsten Bringmann (Associated Partner, Regulatory, Düsseldorf); Vanessa Hoffmann Linhard (Associated Partner, Corporate, Hamburg); Elmar Trautmann (Associate, Corporate, Berlin); Theda Hustede (Senior Associate, Regulatory, Berlin); Christof Federwisch (Partner, Energy, Frankfurt); Patrick Jäger (Senior Associate, Energy, Berlin).

Noerr Advises German Ministry on Contract Amendments and Compensation Scheme for LEAG

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