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Chancellor Angela Merkel’s cabinet on Wednesday approved delayed coal exit legislation that sets a time plan and compensation for closing over 100 hard coal and lignite plants owned by RWE AG, Uniper SE and a handful of other utilities.

In last-minute deliberations, the coalition added bill details outlining compensation for shutting hard coal plants that may total as much as 2.2 billion euros ($2.42 billion). The estimate is based on a compilation of maximum prices that the government will pay for plant closures from 2020 to 2026.

The legislation’s approval in cabinet marks a year of fierce wrangling between Merkel’s government, coal state governors and utilities over the cost of phasing out coal by 2038. From the sidelines, environmental groups and the opposition Greens urged Merkel to curb payments as the market increases pressure on coal power.

The legislation must still run through various stages of parliamentary approval in coming weeks.

--With assistance from Mariajose Vera.

To contact the reporters on this story: Brian Parkin in Berlin at bparkin@bloomberg.net;Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, ;Ben Sills at bsills@bloomberg.net, Raymond Colitt

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