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Free Carbon May Chop Renewable Costs, EON’s Schaefer Says

Europe should consider cutting costs for consumers by rewarding renewable power and energy efficiency through the region’s carbon market rather than through expensive subsidies to utilities, the head of EON SE’s trading unit said.

Clean-electricity producers should be granted free European Union carbon allowances instead of receiving higher electricity rates for wind and solar installations, Klaus Schaefer, chief executive officer of EON Energy Trading SE, said Nov. 21 in an interview in Amsterdam. Using permits to promote low-emitting power would probably reduce the attractiveness of some solar technologies that currently cost consumers at least 10 times more than prices suggested by the carbon market, he said.