The Association of German Industry, or Bundesverband der Deutschen Industrie (BDE), has expressed relief at the news that emerged from both Brussels and Berlin in recent days, as both governments have approved policies set to ease the burden of supporting renewable energy by heavy industry.

Germany has passed a reform bill aimed at reducing support for renewables. The reform will slow the expansion of green energy, which accounts for 25 percent of Germany‘s electricity and force new investors in green power to take some risk.

Dr Joachim Hein (pictured) from the energy and climate policy unit at BDI, the confederation of German industry, told Power Engineering International, “What we can say at this stage is that we really welcome the agreement that has been found by the Federal government and the EU Commission. The last three and a half months have seen extensive and tedious negotiations with an enormous amount of time having gone into explaining the very complex structure of the RES support scheme in Germany.”
Dr Joachim Hein
Dr Hein was also referring to Wednesday’s announcement from the European Commission that it was adopting new state aid rules aimed at making energy more affordable for European citizens and companies, also through reducing supports to renewables.

The guidelines promote a gradual move to market-based support for renewable energy.

Dr Hein added, “Negotiations were extra complicated because the new EEG had to be in line with the future EEAG (Environment and Energy Aid Guidelines) that theCommission only adopted today. It is too early to speak about all the intricacies of the reform but we think that the government and the Commission have been successful in preventing huge looming cost increases for future renewables support that would have proven detrimental to our industries.”

“There will be a number of companies that will have to pay more in the future but all in all we think it is justified to say that the compromise achieved can help to preserve still functioning value chains in our country. We interpret this as a good signal that the COM and the Federal government wanted and want to stand up for competitive industries in Germany and Europe.”

For more news on the German energy reform bill
For more news on European Commission adoption of new state aid rules