German industry association calls for scrapping green subsidies
German industry association urges the future government to reduce subsidies for renewable energy
Germany’s BDI industry association wants the next Germany’s government to re-evaluate the tariff system designed to boost the green energy sector.
With the general elections coming this weekend, the association has urged the future winner to stop the scheme largely considered detrimental to industry competitiveness due to rising energy costs.
Angela Merkel, who is expected to win the elections for the third time, has previously promised revamping the subsidy system but said would like to keep some incentives in place.
The BDI, however, has suggested reforming the renewable energy scheme should be the top priority after the elections, suggesting subsidies should only be paid for a much shorter period of time, covering only the early technology development.
Currently, the producers of energy are offered a long-term price guarantee for the green energy they deliver to the electric grid. This scheme, however, is being criticised as it has not only triggered the green boom, but has also increased energy prices for consumers.
"The discussion ... must focus on the question of how the power market should be structured to limit the costs of the expansion of renewable energy for consumers, to make possible its integration into the market and to safeguard supply," BDI said in a report, obtained by Reuters on Thursday.
Merkel has initiated the green revolution after the Fukushima nuclear disaster in a bid to wean Germany off nuclear power and fossil fuels. Currently, about a quarter of Germany’s power comes from renewable resources.
"Even the smallest of creatures in the most far-flung places around the world are getting wired up for tracking"
- Emissions targets won’t be weakened, says Davey
- 3D printing to transform aerospace manufacturing
- Honda unveils updated humanoid ASIMO robot
- Self-service pacemaker monitoring cuts waiting times
- Smart glasses for blind succeed in Google's competition
- Lockheed Martin to help South Korea build fighter jet
- What to Specialise in Electronics Engineering?? [03:02 am 03/04/14]
- Britain to have just one remaining coal pit by the end of 2015 [01:11 am 03/04/14]
- LV Generator Star point earthing - UK [08:35 pm 02/04/14]
- East West Rail - the Oxford to Bedford route [07:33 pm 02/04/14]
- Small nuclear power [06:06 pm 02/04/14]
The essential source of engineering products and suppliers.
Tune into our latest podcast