HomeRenewablesGerman cabinet agrees on renewable support cuts

German cabinet agrees on renewable support cuts

German ministers have agreed a joint plan to freeze the surcharge on electricity that finances feed-in tariff payments to the renewable sector.

Following discussions between the environment ministry, headed by Peter Altmaier and the economics ministry, under Phillipp Roesler, the way has been cleared to reduce subsidies on renewables.

The surcharge being paid to the renewable sector has come from electricity bills for over a decade but with a general election looming the government is trying to reduce the burden on households and it is expected that the surcharge, currently running at 5 per cent per kilowatt hour will be capped at 2.5 per cent.

Meanwhile the Spanish government are also working on a plant to cut energy costs by cutting subsidies to its renewable energy sector. It is hoped the law in the pipeline will cut the costs to Spain’s electrical system by up to $1bn, as European nations continue to combat the effects of recession.

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