Investors Cancelling Projects in Germany Because of Altmaier

Süddeutsche Zeitung has an article up on the reaction of the market in Germany to Environment Minister Peter Altmaier’s recent “renewable energy brake” efforts. Thanks to Franz Alt for the link.

Altmaier can celebrate. His efforts are already showing big results. Projects in Germany are cancelled because investors reasonably assume that the days where the German government could be trusted are gone.

The article cites Florian Bieberbach, who is the CEO of Munich’s utility “Stadtwerke München“. I recall having blogged about the fact that Munich plans to get to 100% renewable until 2025, and be the first city over a million inhabitants to reach that goal, which makes me kind of proud (being born there).

They will invest about 9 billion euro in renewable energy until 2025 to reach their goal. Now those investments will mainly flow into other countries’ renewable sector.

Bieberbach is especially concerned about the idea of retroactively giving investors worse conditions in 2014. This is the “breaking of a taboo”, in his words, and it leads to his opinion that there is no legal certainty left in Germany.

I agree, except for the fact that this particular proposal will never pass the Bundesrat.

The article then goes on to describe unfortunate effects on investments in wind in the State of Rhineland-Palatine, where plans for about 100 wind turbines may be cancelled.

Congratulations to Altmaier. He is already successfully applying the brake to investment in Germany.

On the other hand, I have some doubts if that is the job of the Environment minister. Maybe he should be more concerned about global warming than about costs.

 

Published by kflenz

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

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