German industry demands reduction of renewable expansion costs - report

Nov 5, 2013 - German associations for the energy intensive industry (EID) and for the chemical industry (VCI) demand from the new government a reduction in costs for the energy transition, German daily Handelsblatt said today.

EID calls for termination of subsidies for newly installed renewable energy systems under the new reform to the renewable energy act (EEG). This would enable expansion driven by competition on the market, EID spokesman and VCI's head, Utz Tillmann, told the newspaper.

VCI demands the introduction of an annual limit for the expansion of renewable energy as well as a reduction in the feed-in tariff. According to Tillman, there is overcapacity instead of a shortage of power plants.

The Christian Democratic Union (CDU) and the Social Democratic Party (SPD), which are currently in coalition talks, are still negotiating how to proceed with the remuneration system for renewable sources. The two parties are currently discussing possible cuts of the exemptions for the industry to 1,000 firms. Some 2,300 companies are currently exempted from the levy.

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