German government wants to reduce subsidies for renewable energy
On Monday, the German Ministry of Economy proposed to reduce subsidies for renewable energy as part of a more “pragmatic” approach to the green transition praised by industry but criticized by environmental activists.
Minister of Economy and Energy Katherina Reiche revealed a long -awaited report on behalf of her ministry and has taken measures that she said to reduce the burden of the transition from Europe’s slow economy.
“The energy transition can only succeed due to more pragmatism and realism,” said the minister, by Chancellor Friedrich Merz’s Center-right CDU party.
“Decisions for energy policy should not lead to miserable investments or over regulation, but must focus on the market.”
An important area on which she concentrated was subsidies for renewable energy, which they said to be “regularly revised to assess their economic benefits and reduced to the absolutely necessary level”.
The report, prepared by Consultancy BET and the EWI Institute, noted that renewable sources sometimes offer more electricity than necessary, but not enough during periods of low sunlight and wind.
The opening must then be filled with fossil fuels.
In particular, it called for the abolition of a subsidy for solar farms that guarantee a fixed level.
It is a clear shift from the previous coalition of Germany, in which the green party led the Ministry of Economy and renewable subsidies were an important tool for speeding up the energy transition.
Reiche, whose party has been in power since May in coalition with the Center-Linkse SPD, it was on Monday that the government is committed to the current goal of increasing the share of renewable electricity in the country to 80 percent in 2030.
Germany wants to reach greenhouse neutrality by 2045.
Reiche’s other recommendations included reducing excessive regulations and always taking into account costs when planning further extensions of renewable energy sources.
Leading industry Federation The BDI praised the report as the “basis for significant efficiency improvements in the energy system”.
“This will make it possible to combine financial viability, industrial competitiveness and climate neutrality,” said it in a statement.
But the NGO environmental action Germany also accused Reiche-Die to build more gas-fired power plants-of the trust in “the short-sighted proposals of the gas lobby”.
Proposals to reduce subsidies “amounts to dismantling important support programs,” the group said in a statement.
