Merkel Party Says States’ Energy Demands to Add Billions to Cost

German states’ demands for changes to a new clean-energy law would add billions of euros to consumers’ bills, a leader in Chancellor Angela Merkel’s party said.

A list of 97 changes and comments by representatives in the Bundesrat upper house of parliament may punish customers to the tune of “billions” of euros, according to Joachim Pfeiffer, economy and energy spokesman for Merkel’s parliamentary group.

The chancellor faces growing resistance from Germany’s 16 states over her plans to reduce aid to the renewables industry. Demands by state representatives, who will discuss the EEG clean energy bill on May 23, include lifting a cap on new biomass installations to 300 megawatts a year, from 100 megawatts.

“The demands from the Bundesrat are ridiculous,” Michael Fuchs, Christian Democratic Union deputy leader, said in an e-mailed statement.

Germany, Europe’s biggest clean-energy market, plans to cut state support for wind, solar and biomass power after renewable-energy subsidies added to costs. While the bill doesn’t require formal approval from states, they could delay implementation.

Merkel wants regional leaders’ support and has already agreed to curb proposed cuts to assistance for wind energy to get the bill passed before parliament’s summer recess in July.

To contact the reporters on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net; Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Tony Barrett, Todd White

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