Germany moves to tackle rising renewable energy costs

Proposals for reforms to Germany’s renewable energy support policy have been tabled by the country’s conservative federal environment minister Peter Altmaier.

At a round table meeting on measures to curb the rising costs of the Renewable Energy Sources Act (EEG), Altmaier and Federal Economics Minister Philipp Rösler jointly presented a proposal.

The two ministers agreed that short-term adjustments to the EEG are necessary to curb immediate costs and, in the longer term, that the EEG needs to undergo fundamental reform.

Short-term Measures

The ministers have proposed a range of short-term measures including freezing the EEG at its current level until the end of 2014. If confirmed, the proposals would subsequently impose a maximum annual tariff rise of 2.5 percent.

The ministers also revealed plans to ensure that new and existing solar and wind parks contribute to the costs of the support program, and that energy-intensive corporations provide a greater contribution.

The short-term measures are anticipated to come into force as of 1 August, 2013.

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