Wednesday, November 13, 2013

German Council of Economic Experts Calls for Freeze of Renewables Energy Sources Act

The latest Annual Report from the German Council of Economic Experts, a.k.a. the 'five wise men' of the German economy,'  calls for "a freeze of the Renewable Energy Sources Act (EEG) while developing a conclusive policy."

German Council of Economic Experts Calls for Moratorium of Renewables Law and Search for Consistent Energy Policy Approach « German Energy Blog:
“Apart from the necessary grid expansion and restructuring, the main national (energy) issues are reducing the costs of renewable growth and creating an electricity market framework so that conventional (back-up) capacities can be maintained and extended and renewable growth takes place without state subsidies. The climate policy aims of the energy policy shift are unlikely to be achieved at the national level, anyway. Solely for grid expansion and restructuring important measures have been taken since the summer of 2011 (concerning the law on the Federal Requirement Plan for Transmission Networks, please see here) that remove barriers and accelerate grid expansion. In all other (energy-related) areas disappointingly little to nothing has happened. This is completely unacceptable for in industrialised country like Germany: The costs for subsidising renewables have more tripled since 2010 and are among the highest subsidies in Germany.

A fundamental reform of the Renewable Energy Sources Act (EEG) is urgently needed. In view of the skyrocketing costs a moratorium would provide the necessary breathing space to finally develop a conclusive overall concept for the energy transition. Such a concept is lacking as much as the integration of the German energy transition in the European electricity market. … Therefore the EU Emissions Trading System (EU ETS) has to be made the main tool of the European climate policy, while abstaining largely from additional partly counterproductive instruments like national support schemes for renewable energies.
The entire summary can be read at the German Energy Blog

Two years ago this blog also noted a report from the same body: German Council of Economic Experts Criticism of Germany's Energy Policy

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