Proposal to Reduce Feed-in Tariff Payments Further

This post is part of a series discussing a new position paper by German Environment Minister Altmaier and Economy Minister Rösler on reducing cost of the feed-in tariff system.

The second proposal in this paper is about reducing various feed-in tariffs even further. It is supposed to result only in very small savings of 0.1 billion euro, and has already attracted fierce opposition from Green Member of Parliament Hans-Josef Fell. He expects that there will be no more new wind parks with this reduction in place.

I am not sure about that. Reducing feed-in tariffs for the future is something that has happened earlier, and considering the small amount of savings (a very modest 70 million for wind), I would be surprised if this kind of reduction is really the end of wind energy in Germany, which has enjoyed a very successful year in 2012, increasing installations 20% over 2011 records.

So I am basically neutral about this particular proposal.

Published by kflenz

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

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