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German Cabinet Approves New Renewable Energy Law and Cuts Subsidies

published: 2014-01-24 16:30

Sigmar Gabriel, the new economy and energy minister of German Cabinet, has approved a renewable energy law to regulate the country’s push for renewable sources on 22th January.

Merkel and Gabriel (Photo Credit: AP)

According to Deutsche Welle (DW), a German media focusing on international news, Angela Merkel and Gabriel acknowledged that pricing and start-up problems with renewables would be the focus of their four-year term. Because of the awareness from the Fukushima disaster in 2011, Merkel has been focusing on getting the country rid of reliance on nuclear power. To achieve this goal, the government and Cabinet have set up subsidies for renewable energy installations and have advocated and drafted necessary proposals.

On Wednesday, Gabriel announced the new renewable energy law that will change Germany’s renewable energy sector. He officially proposed that the new law will charge a fee on self-consumption of renewable energy and the levy would be used for new and existing installations to balance the country’s economic policy and energy development.

As EnergyTrend has reported, PV installations decreased greatly last year due to subsidy cut. Before Gabriel’s announcement, there were reports expressed the decision for Germen government to reduce related supports in a draft proposal. “Europe's biggest economy is in the throes of shifting away from nuclear and fossil fuel-powered generation to so-called renewable sources, but the move has sent electricity costs for consumers soaring,” reported Sydney Morning Herald.

By 2022 Germany plans to have increased its share of power generated by renewable sources to 40 percent, or 45 percent by 2025 while the current share is around 24 percent, reported DW.

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