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Commission to probe German renewable energy laws: Report

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Published 15 July 2013

The European Union plans an investigation into Germany's renewable energy law due to concerns that exemptions for some firms from charges levied on power users breaches competition rules, a German magazine reported yesterday (14 July).

 

Without citing sources, Der Spiegel weekly said lawyers in Brussels had looked at the law which provides a framework for Germany's push to renewable energy, and that Commissioner Joaquín Almunia had concluded it may breach EU rules.

The Commission would open proceedings on Wednesday, it said.

The officials criticised exemptions made for energy intensive companies in Germany, reported the magazine, adding this may lead to companies having to pay millions of euros in back payments.

A spokesman for the Commission declined to comment on the report.

The EU said in March it would investigating power grid charge exemptions which have been granted to big steel, chemicals, glass, cement and building materials companies.

Chancellor Angela Merkel has set out ambitious goals for Germany to wean itself off fossil fuels, phase out nuclear power and switch to renewable energy sources but it is costly.

Households are paying for subsidies to renewable energy producers and have been hit by sharp increases in the last few years. Yet fears that German industry will become uncompetitive if it has to pay too much for energy has led to exemptions from these charges for many firms.

The debate about the cost of the energy transition and energy prices could become an issue in the September election.

Merkel has said she intends to rein in renewable subsidies and reduce the costs of the green revolution on consumers if she is re-elected in September. 

EurActiv.com with Reuters

COMMENTS

  • The debate rages everywhere about subsidies for renewable energy. US data on renewable portfolio standards is widely available at Intersolar and elsewhere. http://alfidicapitalblog.blogspot.com/2013/07/alfidi-capital-checks-out-semicon-west.html

    By :
    Anthony Alfidi
    - Posted on :
    15/07/2013
  • There is little to stop large energy intensive companies owning their own RES & there is considerable benefit. The LCOE for on-shore wind is around 5euro cents/kWhr (source BNEF April 2012) the LCOE for off-shore based on Alpha Ventus data is perhaps 7euro cents. These figures include a 6% cost of finance. Around 50% of German companies are building or looking at on-site RES - for the simple reason that it is cheaper to generate your own electricity than buying it. In terms of energy efficiency a 2010 Fraunhofer report said that German metal bashers could easily save 25% of their energy costs within 5 years. All this raises the issue: why make them the exception to paying the EEG levy.

    By :
    Mike Parr
    - Posted on :
    16/07/2013
Background: 

In May 2011, Germany announced that it would shut all its nuclear reactors by 2022, following the Fukushima nuclear disaster in Japan.

Eight of Germany's oldest 17 nuclear reactors were permanently shut soon afterwards and another six are slated to be taken offline by 2021.

The remaining three reactors, Germany's newest, will stay open for another year until 2022 as a safety buffer to ensure no disruption to power supply.

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