German Renewable Energy Act Reform is not a “Feed-in Tariff 2.0”

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German Energy Minister Sigmar Gabriel, source: dpa

Yesterday, the German cabinet approved the Renewable Energy Act Reform. The reform, referred to by some as the Feed-in Tariff 2.0 (FiT 2.0), was necessary: In the past few years, Feed-in Tariffs successfully boosted renewable energy deployment in the country. This sparked public and policy discussions around the grid development, market integration and financial instruments that would finally enable Germany to reach its policy target of 80% renewable electricity by 2050.

Unfortunately, the bill passed yesterday fails to address any of these questions. Instead, it strengthens the corporations and energy utilities that have failed to integrate renewables into their business model in the past decade. The following analysis shows why the reform cannot be considered FiT 2.0. [Read more →]

April 9, 2014   1 Comment

Feed-in tariffs unleash market forces

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© deENet, Fotografin: Caroline Enders

Feed-in Tariffs (FITs) have come under fire in the past months, being criticized variously as “over-regulation”, “subsidies”, “unfunded liabilities”, “central planning”, “state price controls” and “state aid”. Supporters of this discourse call for market competition and free enterprise instead. What they have not understood is that this is exactly what feed-in tariffs do. [Read more →]

March 13, 2014   No Comments

Energiewende thwarted: Germany’s course jeopardises global climate protection

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International media are reporting that the German Energiewende is failing

Some time ago one might have had the impression that the German word Energiewende would make the leap to the English language as Kindergarten, Rucksack and Autobahn have done. Ever since Fukushima the world has looked to Germany to learn how to transform a centralised and fossil-based energy supply in a climate-friendly, fair and affordable way. “If anyone can do it, it’s the Germans,” you heard politicians, industry representatives and citizens say everywhere – in European countries, on the other side of the Atlantic and as far away as Asia and Australia. [Read more →]

February 21, 2014   3 Comments