Library filed under Taxes & Subsidies from Germany

German wind power hits turbulence

Before Germany’s big shift to renewable energy, electricity for industry was produced where it was needed; near the manufacturing heartlands of the Ruhr and greater Stuttgart. But now that nuclear reactors are being switched off, and renewables are taking priority over energy generated from fossil fuels, the country’s energy is being generated a long way from its heavy industry.
26 Nov 2013

Industry warns over German move to cut green energy subsidies

Angela Merkel, the German chancellor, has declared that reforming Germany’s transition to renewable energy is a key priority of the incoming government. “Above all we must curb the explosion in costs of renewable energy subsidies. One of the first major projects of the new federal government will be an amendment to the renewable energy legislation,” Ms Merkel said in her weekly podcast.
12 Nov 2013

BASF CEO says electricity grid fees put jobs at risk

BASF (BASFn.DE) chief executive Kurt Bock said German jobs could be lost if the chemicals giant has to start paying electricity grid fees to shift the burden of funding a renewable energy infrastructure to large companies. "If politicians burden us with such a fee, then there is a danger that production will be transferred somewhere else."
10 Nov 2013

Energy costs widen gap in competitiveness

Consumers are less willing to foot the whole bill for policies to mitigate global warming. The shift in the debate is most conspicuous in Germany, where the Energiewende – Chancellor Angela Merkel’s historic drive wind and solar ­– has left German consumers with among the highest prices for electricity in Europe. The German environment ministry says the total cost of the Energiewende could reach about €1tn.
14 Oct 2013

Merkel looks left to rescue Germany's energy revolution

The German chancellor's experiment to wean Europe's biggest economy off nuclear and fossil fuels and push it into renewables is at risk because generous subsidies have proved so popular with investors in green power that the country is straining under the cost. ...The offshore wind industry, in particular, is clamouring for continued support as its expansion has proven more costly than expected.
26 Sep 2013

Germany's effort at clean energy proves complex

Last year, wind, solar and other nonfossil-fuel sources provided 22 percent of the power for Germany, but the country increased its carbon emissions over 2011 as oil- and coal-burning power plants had to close gaps in the evolving system ...Germany's power grid has been strained by new wind and solar projects on land, compelling the government to invest up to $27 billion over the next decade to build roughly 1,700 miles of high-capacity power lines and to upgrade lines.
19 Sep 2013

Merkel faces election scrap over German energy shift

Generous state incentives for solar, wind and biogas have driven up prices, which are now among Europe's highest and set to rise 20 percent more next year, topping 1,000 euros annually for the average three-person household. ...But Steinbrueck charged that "the management of this energy transition is a disaster ... it is the biggest brake on investment we have."
10 Sep 2013

Germany's Energy Poverty: The regressive energy tax

It is only gradually becoming apparent how the renewable energy subsidies redistribute money from the poor to the more affluent, like when someone living in small rental apartment subsidizes a homeowner's roof-mounted solar panels through his electricity bill. The SPD, which sees itself as the party of the working class, long ignored this regressive aspect of the system.
5 Sep 2013

German green energy bluster running out of wind

At least one green energy developer recognizes that these stimulus subsidy programs have a record of doing more harm than good, and he isn't reluctant to say why. Patrick Jenevein, CEO of the Dallas-based Tang Energy Group, posted a Wall Street Journal article arguing that "the sequester offers Washington a rare opportunity to roll back misguided subsidies and maybe help reverse wind power's stalling momentum."
13 Aug 2013

Unfair competition? EU takes on German Green Energy Law

Under the law, German electricity users pay a charge that goes towards funding renewable energy generation. Competition Commissioner Joaquin Almunia believes that exemptions granted to some energy-intensive German companies from those charges run counter to EU law. The Commission plans to launch proceedings and also require companies to repay the charges they were exempted from in the past.
15 Jul 2013

Germany to pull plug on solar subsidies

Solar energy is notoriously unreliable as a power source and Germany has seen its market hobbled by oversupply and ferocious competition from players such as China. Merkel, campaigning for a third term, has promised an overhaul of subsidies for renewable energy after the September general election ...Berlin "has so far invested 216 billion euros ($A308.24 billion) in renewables
9 Jul 2013

Tilting at windmills; Germany's Energiewende bodes ill for the country's European leadership

Because producers of renewables are paid a fixed price, their subsidy rises as the spot price of electricity falls. On cloudy days Germany relies ever more on brown coal. ...The cost of this mess is passed on to electricity users. Household fuel bills have gone up by a quarter over the past three years ...because the contracts guaranteeing renewables prices are set for 20 years, the problem will get worse as more supplies come on stream.
15 Jun 2013

War on Subsidies: Brussels Takes Aim at German Energy Revolution

The costs of start-up financing for green energy and the compensation for expansion of the power grid are added to customers' electricity bills in the form of a special tax. The entire subsidy system is supposed to come to an end when green energy becomes competitive. That, at least, is the theory. But the reality is different. No longer can one simply describe the tax as a way to get renewable energies off the ground. Indeed, following Berlin's decision two years ago to shelve nuclear energy and accelerate the expansion of renewables, the EEG has become a giant redistribution machine.
29 May 2013
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