Criticism of the energy policy plans put forward by Federal Economics Minister Katherina Reiche (CDU) shows no signs of abating. On Thursday, the Mechanical Engineering Industry Association (VDMA) stated that the proposal for the so-called “grid package” risked hindering the expansion of wind energy. The German Solar Association (BSW) warned of a “massive slump in the expansion of photovoltaics.”
“The industry is concerned that the current draft laws fail to provide the investment-secure framework necessary for the continued success of onshore wind energy,” stated Bärbel Heidebroeck, President of the German Wind Energy Association (BWE). “Given recurring energy crises and rising electricity demand, this policy runs counter to the interests of the industrial sector and the general public.” She called for urgent “corrections” to the legislative proposals.
“The damage caused by the cuts planned for new solar power systems starting in 2027 would be alarmingly high,” explained Carsten Körnig, CEO of the German Solar Association (BSW). “While the federal government aims to accelerate the expansion of renewable energy, the plans presented by Federal Economics Minister Reiche would eliminate key foundations for investment and largely destroy the economic viability of new solar projects.”
Image: Shutterstock
On Friday evening, the Federal Ministry of Economics presented its draft proposals for the so-called “grid package” and the reform of the Renewable Energy Sources Act (EEG). Earlier drafts had already faced sharp criticism. While the plans have been noticeably toned down in the versions now coordinated with other ministries, criticism persists.
According to the revised drafts, there is no longer a provision allowing new renewable energy installations to be shut down without compensation during grid bottlenecks. Payments are not to be eliminated entirely, though they will be reduced. The EEG reform also still envisages abolishing subsidies for small solar installations, although “transition payments” are planned until 2029.
The housing industry, among others, opposes the abolition of solar subsidies—specifically the state-guaranteed feed-in tariff for electricity. Axel Gedaschko, President of the housing industry’s umbrella association, emphasized the importance of the guaranteed remuneration for photovoltaic systems on apartment buildings. Eliminating it would significantly hinder the expansion of photovoltaic systems in that sector.
The German Association of Energy and Water Industries (BDEW) stated that while it was positive “that the draft bills for the Renewable Energy Sources Act (EEG) amendment and the grid connection package have finally been released,” it was “absolutely unacceptable” that industry associations were given only three working days to evaluate the complex regulations, criticized BDEW head Kerstin Andreae.
Criticism of the plans from various quarters indicates a lack of an “orderly stakeholder process.” Issues need to be clarified before the cabinet makes its decision. “Only laws whose impact on the industry has been clearly analyzed—and balanced against practical realities—can be good laws,” Andreae explained.
Author: AFP – pe/bk
Sources: AFP Press Portal