German renewable energy sentiment deteriorates in Apr

May 14, 2014 - The business climate index in Germany''s green energy sector fell once again under the 80-point mark to 79.4 points in April from 83 points the previous month, hitting its second lowest value, German renewable energy institute IWR said on Tuesday.

In February, the index reached its all-time low at 77.4 points but was able to recover slightly in March.

The business climate index measures the mood in the renewable energy industry about the current situation in the sector and expectations for the next six months. The index has remained below the 100-point threshold, separating pessimism from optimism, since 2011.

The continuing deterioration of the industry's sentiment is attributable to the reform in Germany's Renewable Energy Act (EEG), IWR said. In its outlook for the coming six months and the implementation of the reform, the industry's mood will remain negative.

The amendment to the EEG was approved by the German government earlier in May and will become effective as of August. The reform envisages a cut in the annual renewable expansion targets, introduction of mandatory direct marketing for green power and the inclusion of the electricity produced for own consumption in the EEG-levy.

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