Draft proposal cuts German renewables support

• 10 years ago (2014-01-19)
• Junior Isles

Europe 1089 Nuclear 659 Renewables 776

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Germany's economy minister and leader of the SDP, Sigmar Gabriel, plans to cut the feed-in-tariff (FiT) support level for solar and wind power generators by about a third from 2015, according to a draft cabinet proposal.

FiT support paid to renewable power generators would be cut to an average of €12 cent/kWh across all technologies by 2015 under the new proposals, down from €17 cents/kWh currently.

Onshore wind and solar plants capacity growth is reduced to 2500 MW per year in the proposal, while offshore wind is to be expanded by 6500 MW up to 2020.

The proposal also suggests the FiT reduction start taking effect for some new projects before the end of January.

"The old rates of support (under the old renewable energy law (EEG)) are applicable for wind energy plants that start operating by Dec 31, 2014 and that were authorised... by Jan. 22, 2014," the draft proposal states.

Germany has been transitioning away from fossil fuel-powered generation towards a greater reliance on renewables but the sudden post-Fukushima decision to phase out nuclear by 2022 prompted Germany to accelerate renewables growth. The move has, however, increased the cost of electricity for consumers.

Renewables subsidies are currently borne by German households, with bills almost doubling in a decade to an average of €300 per MWh, some of the highest in Europe.

As part of its forming agreement, the coalition government decided to revise down renewables growth and reform the FiT structure afforded to solar and wind power when it formed last year.