German Parliament Reforms Renewable Energy Law

by Henry Kaplan | Jul 11, 2014 |

(Chancellor of Germany Angela Merkel. By vorderstrasse, via Wikimedia Commons)

Germany’s changes to its renewable energy law passed in the upper house of parliament and is expected to go into effect in August. The law will cut back on renewable energy subsidies, and will change the way the remaining subsidies are funded.

Germany has had some of the strongest support for renewable energy of any country, but with this reform, they are rolling that back. The Wall Street Journal explains the rationale:

The government said the bill is necessary to deal with the undesired side-effects of its flagship project which aims to replace nuclear power with renewables over the next eight years and most fossil fuels by the midcentury. The policy known as "energy transformation" has resulted in a green energy production boom, but has also pushed up power prices for consumers and many businesses. Companies have complained rising power prices would hurt Germany's industrial base.

The upper house approved this bill just days after Germany reached an agreement with the EU, which sought to make sure that Germany’s legislation would not give an unfair advantage to German industries. 

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