The legislation will stipulate the creation of a 4.4GW capacity reserve from fossil-fuel generation to safeguard the power market from unforeseen events and guarantee stability of supply amid rising shares of fluctuating renewable energy in the system.

Included in the legislation is a plan for utilities RWE, Vattenfall and Mibrag to phase out 2.7GW of lignite-powered capacity to help Germany reach its 2020 climate targets.

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