Expansion of renewables in Germany is set to slow down
Monday, July 4, 2016
Subject
Germany's renewable energy reform.
Significance
A reform of Germany's renewable energy law is set to be passed in parliament on July 8. The reform, which was agreed by the German cabinet on June 8, will move the system away from feed-in tariffs towards competitive capacity auctions. It will also limit the expansion of renewables to a government-controlled limit.
Impacts
- A strong coal lobby will keep influencing energy policy, slowing down the phasing out of coal.
- A coalition involving the Green Party after the next general election in 2017 could implement further changes.
- Political uncertainty, regulatory barriers and financial bottlenecks may slow down renewable energy expansion.
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