GERMANY — Reports from energy industry channels in Europe today indicate that German-based power production giant, RWE, will shutter at least one of its fossil-fuel based electricity generation plants.

Having endured major profit losses while watching surplus energy supplies swell, RWE cites a growing renewable energy trend as the culprit. In the past year, solar energy has made strides in efficiency, availability and ROI for those using the technology.

Offsetting the dipping profit margins will require RWE to slash power production by about 3,100 megawatts (roughly six percent of its total capacity). While it is possible that RWE could avoid shutting down facilities entirely, at least a temporary closure is foreseen as a certainty.

In a recent statement posted on its website, RWE explains the breadth of the situation, stating “Due to the continuing boom in solar energy, many power stations throughout the sector and across Europe are no longer profitable to operate. During the first half of 2013, the conventional power generation division’s operating result fell by almost two-thirds.”

RWE is not alone in its predicament. German based competitor ‘E.On’ reported it had to slash production by 6,500 megawatts. That’s still lower than its original planned reduction of 11,000 megawatts, but the utility could eventually reach that amount.

The initial impact of RWE’s power generation losses were somewhat mitigated by a stroke of good fortune in the form of an unusually frigid winter. Natural gas revenues kept RWE above water well enough while demand and prices climbed in the peak heating season.

However, relying on cold temps in the next year is not enough to dependably compete in the shadow of the growing renewable energy trend for RWE. As one of the world’s largest fossil-fuel power producers, the German firm could represent a global precedent for the energy industry in dealing with alternative energy competitors.