The document announcing new fuel-economy standards for US cars and light trucks contains a quiet observation that shrieks about problems of renewable-fuel mandates.

Czech electricity company CEZ is to decide by the end of 2012 on the sale of some of the five coal-fired power plants it has put on offer to meet regulatory demands.

CEZ will receive intitial bids on Friday for the planned divestment to appease EU regulators and end a long-running dispute with a supplier over coal prices.



The majority state-owned group is offering for sale its 1000 MW Pocerady plant, one of its most profitable, and the 800 MW Chvaletice station.

It will also look to sell its Tisova plant together with the Melnik 3 station, and the hard coal-burning Detmarovice plant. Both have installed capacity of around 800 MW.

CEZ, central Europe's biggest listed company with a market capitalisation of $18 billion, said last month it expected more profit from selling the plants than continuing to operate them.

The potential sale of the plants would free up capital for investments in nuclear and renewable energy, CEZ has said

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German chancellor Angela Merkel is urging negotiations as the key to resolving a controversial solar power sector trade dispute between Europe and China.

“We should try to solve the problems in the solar sector to avoid an anti-dumping case,” Ms Merkel said. “We have time for that, and it would be better if we could find a solution through talks.”



The German leader’s words came at a meeting with the Chinese premier, Wen Jiabao in Beijing.

Her reluctance to support a trade action taken by German solar company, Solar World, may raise the hackles of EU trade commissioner Karel De Gucht, who is taking a tough stance on what are perceived to be unfair trade practices by China.

Mr De Gucht is due to open a formal investigation next week to determine whether Chinese manufacturers have dumped their products on the EU market. That review could lead to punitive tariffs – an outcome the chancellor told her Chinese hosts she was keen to avoid.

Mr Wen welcomed Ms Merkel’s call for talks, saying it could serve as a model for the solution of trade conflicts worldwide.

Meanwhile a spokesman for Mr De Gucht said: “We’ve seen Chancellor Merkel’s comments and we take note of them.”

Privately, EU officials and diplomats said it was unlikely that talks to resolve the dispute could be concluded before a 45-day review period ends next Friday. They also noted that Mr De Gucht was required to handle cases in accordance with EU trade law – not diplomacy.

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