The German government's plans to freeze the country’s renewable energy levy have ground to a halt.
Earlier this year environment minister Peter Altmaier outlined proposals to freeze Germany's feed-in tariff at €0.528 (US$0.71) to curb electricity price hikes, estimating a saving of €1.86 billion to electricity consumers.
But opposition from the Social Democrat Party, Die Grünen (Greens) and Die Linke (the Left) has resulted in the rejection of these measures yet again at an energy summit attended by state prime ministers and Chancellor Angela Merkel.
In January, the German Industry Association (BSW) said Altmaier’s proposals would “throttle” the domestic renewables industry.
Stefan Kohler, CEO of Germany Energy Agency DENA told German newspaper Bild electricity prices could hit €0.63 per kilowatt hour by 2014.
A spokesman for Altmaier said negotiations between national and regional governments have been halted and that reform of the EEG would have to be developed by the future government after Germany's September general election, according to Photon.
Member of the Green Party, Hans-Josef Fell, said in his blog that the likelihood of any changes to the EEG being implemented before the general election in September is unlikely. He writes that has put an end to “considerable uncertainty” and should entice investors back to Germany.