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German Government report: Scrap all green energy subsidies

Green Energy Does Little to Fight Global Warming and Only Makes Electricity Expensive

Madeline Chambers — Reuters — February 27, 2014

A commission of experts appointed by the German parliament has recommended Chancellor Angela Merkel’s government to abolish all subsidies for green energy, highlighting mounting opposition to plans to reform instead of scrap the system.

Economy and Energy Minister Sigmar Gabriel is finalising much-disputed changes to the Renewable Energy Law (EEG) which includes reductions in subsidies for green energy before he presents it to cabinet in early April.

Shifting Europe’s biggest economy to energy from the sun and wind and away from nuclear and fossil fuels is a top priority of Merkel’s new right-left coalition government.

But the project, which offers some 20 billion euros in green subsidies a year and is paid for by electricity users, has been dogged by the competing interests of industry, a booming green sector and the country’s 16 federal states.

The Commission for Research and Innovation (EFI) handed its report to Merkel on Wednesday.

It concluded that the system of feed-in-tariffs, under which green power producers are paid guaranteed, above-market prices to put electricity on the grid, is fundamentally flawed.

The German energy crisis is pushing the government to consider ending green energy subsidies because they do little to fight global warming and only serve to make electricity more expensive.

A recent government report is urging the complete abolition of the country’s Renewable Energy Sources Act (EEG), which imposes hefty taxes on families and businesses to subsidize green energy production.

The annual report from the Expert Commission on Research and Innovation (ECRI) concluded that Germany’s green energy law is not a cost-effective way to fight global warming and does nothing to stimulate technological innovation.  Continue reading here….


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