Germany’s federal and state governments have failed to agree on a proposal to bring the country's renewable energy incentive scheme under control.
Earlier this year Minister of Economy Philipp Rösler and Environment Minister Altmaier outlined proposals to freeze Germany's feed-in tariff and place a cap of 2.5% a year on increases to the renewable energy tariff that funds the FiT. This would have saved consumers an estimated €1.86 billion.
But opposition from the Social Democrat Party, Die Grünen (Greens) and Die Linke (the Left) has resulted in the rejection of these measures. A government committee has been set up to present a revised proposal, with the aim of reaching a compromise between opposing parties, on 21 March at an energy summit that will be attended by state prime ministers and Chancellor Angela Merkel.
German solar industry body BSW said that the proposals would reduce the likelihood of future investment in renewable energy in Germany and would “throttle” the industry.
An article by Ulli Gericke from German press Borsen-Zeitung had predicted this outcome last month writing that it would be very unlikely that Minister for the Environment Peter Altmaier would be able to push his proposals through parliament before the elections in September this year.