EU regulators take Britain to court over coal plant

* RWE (LSE: 0FUZ.L - news) says installing technology to lower emissions

* Infringements can lead to steep fines (Adds RWE reaction)

BRUSSELS, March 26 (Reuters) - European Union regulators have referred Britain to the EU Court of Justice in Luxembourg over the failure of a coal-fired plant in Wales, operated by RWE (Swiss: RWE.SW - news) npower, to reduce nitrogen oxide emissions, the European Commission said on Thursday.

Under EU law on emissions from large combustion plants, member states had until Jan. 1, 2008 to reduce emissions of a number of pollutants from power plants.

The Aberthaw power plant in Wales does not meet the requirement of the directive as it operates under a permit that sets a limit on nitrogen oxides of 1200 mg/Nm3 (milligrams per cubic metre), more than double the 500 mg/Nm3 limit set in the directive, the Commission said.

RWE said in an emailed statement it was committed to lowering emissions and it was installing the relevant technology "as quickly as is feasible".

In its statement, the EU executive noted the British government had been working on the issue, but said it had first raised its concerns formally in 2013 and after ample warning, was referring the case to the highest EU court in Luxembourg.

Nitrogen oxides cause acid rain, damaging plant and animal life in forests, lakes and rivers, and harming buildings and historical sites.

They can also cause eutrophication, when an excess of nutrients such as nitrogen oxides and ammonia threatens biodiversity through the excessive growth of plants like algae.

The European Court of Justice has the power to hand out daily fines if it finds in favour of the Commission.

(Reporting by Barbara Lewis, additional reporting by Nina Chestney in London; editing by Philip Blenkinsop, Vincent Baby and David Evans)