Germany should not introduce cuts to already guaranteed renewable subsidies, European Energy Commissioner Günther Oettinger has said, warning that such a move would seriously hurt investor confidence.
Political parties and energy groups are all in favour of reforming Germany’s renewables law, a step likely to be taken after next month’s general elections, but concrete proposals have been scarce.
Investors have repeatedly warned that cuts in already agreed renewable subsidies, which are guaranteed over roughly 20 years, could damage investors’ willingness to spend badly needed cash on Germany’s energy shift towards alternative power sources, estimated to cost about €550 billion.
“We strongly advise against retroactive measures,” Oettinger said during the annual Handelsblatt Renewable Energy conference on Monday (25 August).
“That means all those that have installed solar panels, biogas plants or wind parks should receive the level of support that was guaranteed at the time of installation.”
European countries including Spain, the Czech Republic and Bulgaria have all implemented retroactive taxes on existing operators of renewable energy installations, leading investors to harshly criticise such moves.