Germany Plans to Cut Renewable Subsidies as State Costs Soar
- Nation to cut all payments next year when prices turn negative
- Payments will also be based on investment rather than output
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Germany plans to cut and reform subsidies it pays to renewable energy producers because of rising costs for the government, a move which may fuel uncertainty over future investment.
From January, payments for mid-size and large projects will be canceled if electricity prices fall below zero, according to a draft budget law approved in the cabinet Wednesday. Negative prices occur when power supply exceeds demand, for example when weather conditions cause wind and solar generation to peak.