Renewable Portfolio Standard Proposal Rejected by German Government

PV Magazine reports on this development in English here, (thanks to this tweet by Energiewende Germany for the link) and there is some more information at a government press conference transcript from yesterday (in German)

The German “Monopolkommission”, a committee of experts on antitrust law, has proposed to abolish the Law on Priority for Renewable Energy (EEG) and introduce a renewable portfolio standard instead.

This position is shared by the FDP, which is the foremost enemy of renewable energy in Germany, but no one else. It is a fringe minority loser position in German politics that won’t get anywhere. The FDP is under 5 % in current polls and will hopefully be booted out from the German Parliament in next years election. I am looking very much forward to that happening.

The whole Cabinet has discussed this proposal, and rejected it. The basic policy will be to keep the EEG and discuss which changes in detail might be necessary.

Renewable portfolio standards may be cheaper (that is at least the idea). But even if so, they would lead to development only for those options that happen to be the cheapest at that particular time. For example, offshore wind right now is a rather costly option, so it would not see much development under such a policy. And solar PV would never have been able to get off the ground.

While it might be interesting to speculate about the merits of some kind or other of renewable energy standard in comparison to the feed-in tariff adopted by the EEG, it is quite clear that any such proposal has zero chance of finding a majority in Germany. Deployment of renewable will be financed under the feed-in tariff system also in the future.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

4 thoughts on “Renewable Portfolio Standard Proposal Rejected by German Government

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