Released February 04, 2014 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Germany's generous renewable energy subsidies are to be cut by the country's coalition government in an effort to rein in the cost of renewables to the state and the rising cost of electricity for businesses and consumers.
Spearheaded by the Economy Minister, Sigmar Gabriel, the controversial changes to the Renewable Energy Sources Act (EEG) being put forward include a move to cut subsidies for a variety of renewable power sources from the current 0.17 ($0.23) per kilowatt hour (KWh) to 0.12 per KWh by 2015. There will also be a cap placed on the amount of new onshore wind and solar power of 2,500 megawatts (MW) per year. The country's budding offshore wind sector will also be hit with a cap of 6,500 MW until 2020.
"We need to break the dynamics of ever-rising electricity bills, while ensuring a stable supply of energy for all," Gabriel told parliament last week, but he faces major resistance from the opposition parties and is under fire from certain German business sectors and the renewable energy sector. Critics in the renewable energy sector claimed that lowering subsidies will lead to less investment in the sector and a return to burning more coal and gas.
Gabriel estimated that Germany's consumers are paying approximately 24 billion ($30.6 billion) in higher electricity bills annually because of the country's drive to install more renewable energy. He argues that while the changes will not guarantee a fall in electricity prices, they should stop any further increases.
Germany's energy future was thrown into turmoil back in 2011 when the government reversed its support for nuclear power in the wake of the Japanese nuclear accident at the Fukushima nuclear plant, located north of Tokyo. It decided then to abandon nuclear power altogether, vowing to close all 17 of its reactors over the next decade. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.
The changes being proposed by Gabriel also include cuts to the energy price discounts received by Germany's most energy-intensive industries, such as chemical processing and steel, and those businesses with their own power plants. Many have been exempt from paying the renewable subsidy or have paid significantly less than other businesses for electricity.
Germany's preferential subsidies for heavy industry is facing an investigation by the European Commission (E.C.). It intends to find out if the subsidy reductions offered on renewable energy surcharges are in line with European Union rules.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Spearheaded by the Economy Minister, Sigmar Gabriel, the controversial changes to the Renewable Energy Sources Act (EEG) being put forward include a move to cut subsidies for a variety of renewable power sources from the current 0.17 ($0.23) per kilowatt hour (KWh) to 0.12 per KWh by 2015. There will also be a cap placed on the amount of new onshore wind and solar power of 2,500 megawatts (MW) per year. The country's budding offshore wind sector will also be hit with a cap of 6,500 MW until 2020.
"We need to break the dynamics of ever-rising electricity bills, while ensuring a stable supply of energy for all," Gabriel told parliament last week, but he faces major resistance from the opposition parties and is under fire from certain German business sectors and the renewable energy sector. Critics in the renewable energy sector claimed that lowering subsidies will lead to less investment in the sector and a return to burning more coal and gas.
Gabriel estimated that Germany's consumers are paying approximately 24 billion ($30.6 billion) in higher electricity bills annually because of the country's drive to install more renewable energy. He argues that while the changes will not guarantee a fall in electricity prices, they should stop any further increases.
Germany's energy future was thrown into turmoil back in 2011 when the government reversed its support for nuclear power in the wake of the Japanese nuclear accident at the Fukushima nuclear plant, located north of Tokyo. It decided then to abandon nuclear power altogether, vowing to close all 17 of its reactors over the next decade. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.
The changes being proposed by Gabriel also include cuts to the energy price discounts received by Germany's most energy-intensive industries, such as chemical processing and steel, and those businesses with their own power plants. Many have been exempt from paying the renewable subsidy or have paid significantly less than other businesses for electricity.
Germany's preferential subsidies for heavy industry is facing an investigation by the European Commission (E.C.). It intends to find out if the subsidy reductions offered on renewable energy surcharges are in line with European Union rules.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
