German government looks to slash renewables funding

GERMANY: A joint proposal to cut the costs of increasing Germany's renewable energy capacity has been presented by the federal economy and environment ministers.

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If the measures are implemented, renewable energy association BEE fears a massive market collapse for investment in renewables.

The paper, which has been met with widespread criticism, includes:

  • A one-off 1.5% decrease in renewables support payments in 2014 for wind and other renewables plants installed before August 2013.
  • An initial five-month period without any support for all wind and renewables plants that are commissioned after 1 August 2013.
  • A 20% cut in the onshore wind energy feed-in tariff and a 4% cut in the offshore feed in tariff that is paid from the sixth month after commissioning of the new plants.
  • New onshore and offshore wind farms commissioned after 1 August 2013 will also be excluded from using the guaranteed feed-in tariff system.

New projects will have to use the "direct marketing" market-premium mechanism, although this will be linked to the feed-in tariff rates.

The planned 4% cut will undermine the economic basis for all offshore wind projects in planning or under construction, warned German wind energy association BWE.

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