German renewable energy sentiment falls record low in Feb 2014 - IWR

Mar 13, 2014 - The German index of the business climate for the renewable energy industry dropped by 14% on the month to 77.4 points in February 2014, reaching its all-time low under the weight of the ongoing debate on renewable energy, German industry reseracher IWR said yesterday.

The previous record low was registered in February 2013, with the index falling to 80 points. IWR launched the index, measuring the morale among companies in the renewable energy industry, in 2004.

In their outlook for the coming six months, one third of the polled companies said they expected the situation in the industry to worsen. In addition, 25% of the surveyed firms plan to reduce their workforce in the period. The companies' sentiment remains positive only about exports.

The planned reforms in the Renewable Energy Law (EEG) envisage subsidy cuts for renewable power plants and a reduction in the annual target of solar power installation to 2.5 GW per year from the 3.5 GW in 2013. In addition, owners of power systems for own use are also to pay charges.

The business climate index has kept the downward trend since the German federal elections in September 2013 and has remained below the 100-point threshold, separating pessimism from optimism, since 2011.

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