(Bloomberg) -- A giant coal-fired power plant in southwest Germany owned by some of the nation's biggest utilities is facing a supply problem amid soaring prices and low river levels curbing deliveries.
Grosskraftwerk Mannheim, a combined heat and power plant with a capacity of 2 gigawatts, said restocking is limited until further notice. While electricity from the plant has not yet been restricted, it will eventually be forced to cut output if it runs low on fuel. The worsening situation highlights the difficulties power generators are facing as Europe's supply of energy gets increasingly tight.
“The overall supply issues relate to the currently tense situation on the hard coal market and the current water level of the Rhine,” Nadine Gieser, a spokeswoman for the plant, said.
RWE AG has a 40% stake in the facility, while EnBW Energie Baden-Wuerttemberg AG holds 32%. The latter said Wednesday in its annual report that it's reducing coal buying from Russia.
European Coal Jumps to Record High on Russia Supply Squeeze
The energy crisis and the scramble to replace Russian raw materials because of its war in Ukraine has sent prices for the fuel soaring to levels four times higher than a year ago.
Energy Crisis Forces German Power Plant to Halt on Lack of Coal
On Wednesday, the water level at Kaub, one of two key bottleneck points along the Rhine, was at its lowest for this time of year since at least 2006, according to data from the German Federal Waterways and Shipping Administration. Coal plants like Grosskraftwerk Mannheim and Steag's Bergkamen-A uses river barges to transport supplies.
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