Germany to cut energy rebates for industry, renewable subsidies

The German coalition government agreed in January 2014 on far-reaching cuts to industry energy rebates and wind power generation. The plan, which was still being negotiated, would reform the Renewable Energy Sources Act (EEG), and was introduced by Sigmar Gabriel, German Minister for Economic Affairs.

On the 7 February 2014, EurActiv reported that Germany's domestic energy prices are 48% higher than the European average and that the new German government should make an effort to put the energy transition back on track.

On the 13 February 2014, Germany announced it would extend the disputed subsidies to heavy industry.

Competition commissioner Joaquin Almunia and the German vice-chancellor and energy minister Sigmar Gabriel met on the 17 February 2014 to further discuss on an possible agreement to solve the dispute.

On the 26 February 2014, a German government-commissioned committee on research and innovation called for the abolition of the Renewable Energy Sources Act. They argued that maintaining growth in the renewables sector had led to price hikes, but had not promoted climate protection.

• Primary Source

ESO: Background information: Expensive renewable energy is threat to industry: German minister http://www.europeansources.info/record/expensive-renewable-energy-is-threat-to-industry-german-minister/

Deutsche Welle, 22.01.14: German Cabinet approves renewable energy law http://dw.de/p/1Avoi

ESO: Background information: Energiewende vs. Shale Gas. Can German industry compete? http://www.europeansources.info/record/energiewende-vs-shale-gas-can-german-industry-compete/

ESO: Background information: EU energy chief warns against German renewable subsidy cuts http://www.europeansources.info/record/eu-energy-chief-warns-against-german-renewable-subsidy-cuts/

Deutsche Welle, 30.01.14: German energy minister Gabriel defends subsidies cut to rein in renewables costs http://dw.de/p/1AzSI

Spiegel Online International, 30.01.14: Gone With the Wind: Weak Returns Cripple German Renewables http://www.spiegel.de/international/business/wind-power-investments-in-germany-proving-riskier-than-thought-a-946367.html

Deutsche Welle, 30.01.14: Germany's green energy debate just beginning http://dw.de/p/1Azp8

EurActiv, 07.02.14: German energy prices 50% higher than EU average: McKinsey http://www.euractiv.com/energy/soaring-german-energy-prices-50-news-533318

EurActiv, 13.02.14: Germany extends disputed renewable energy subsidies to industry http://www.euractiv.com/energy/germany-extends-disputed-renewab-news-533473

EUObserver. 18.02.14: EU commissioner clashes with Germany on energy subsidies http://euobserver.com/environment/123172

EurActiv, 19.02.14: Brussels and Berlin near agreement over green energy rebates http://www.euractiv.com/energy/brussels-berlin-near-agreement-e-news-533604

Deutsche Welle, 28.02.14: Government advisory panel frowns on German energy reforms http://dw.de/p/1BH7w

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