Climate Changed
Subsidy-Free Green Power May Be Closer Than You Think in Germany
- Scrapping consumer support for clean tech speeds energy shift
- Higher carbon price and equipment costs seen as drivers
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Germany’s decades-old willingness to subsidize green power is crumbling in the face of political headwinds over the cost of technology that’s only getting cheaper.
For the first time next year, the cost of electricity coming from wind and solar farms is set to fall below prices in the wholesale market in Germany, Britain and France, according to data from Bloomberg NEF. That outlook is endorsed by Germany’s biggest energy industry association and a few companies pursuing “merchant” deals where facilities make money purely from selling power at market prices.