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Government supports market stimulus in principle

The German government has in principle agreed on a market stimulation program for wind and other renewables. The funding will come from a new renewable energy tax, which is part of an ecological tax reform to take effect next month. The amount raised by the tax is expected to be DEM 250-300 million. The program will support investment in renewable projects that are nearly ripe for the market, including individual wind turbines, solar collectors, small hydro stations, biomass, biogas and geothermal plant. The average rate of support on investment will be 20%. The program is expected to create between 12,000 to 15,000 jobs.

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