Germany Should Cap Clean-Energy Aid, Agora Energiewende Says

German Chancellor Angela Merkel’s third-term government should cap aid to clean-energy developers to cut the costs of the country’s plan to shutter nuclear reactors and expand renewables, a policy adviser said.

Germany should “radically simplify” its clean-energy subsidy system by paying no more than 8.9 euro cents (12 cents) a kilowatt-hour in aid to new renewable units, Agora Energiewende, a group owned by the Stiftung Mercator public-policy group and the European Climate Foundation, said today in a statement. Aid should decrease in line with capacity additions, it said.

The plan would favor onshore wind and solar plants over offshore wind, biomass and geothermal units to “avoid unnecessary costs for power consumers,” Agora said. New generators sized 1 megawatt or larger should be forced to sell power on the market, it said.