BERLIN--Germany's upper house of parliament Friday passed an
ambitious renewable energy law which aims to mitigate the effects
of the country's move away from nuclear and fossil-fuel generated
power.
The upper house, which represents Germany's 16 states and which
could have delayed the bill, passed the bill ending months of tough
negotiations. And the reform of the renewable energy law can come
into force as planned on August 1.
The green light was given after the European Commission on
Wednesday said it had ended a probe into Germany's legislation and
gave backing to the plans after Berlin agreed to make some
amendments to the law which had initially sparked a war of words
between Berlin and Brussels.
The government said the bill is necessary to deal with the
undesired side-effects of its flagship project which aims to
replace nuclear power with renewables over the next eight years and
most fossil fuels by the midcentury. The policy known as "energy
transformation" has resulted in a green energy production boom, but
has also pushed up power prices for consumers and many businesses.
Companies have complained rising power prices would hurt Germany's
industrial base.
The imminent law trims subsidies for new green power plants,
which range from vast wind farms to small solar panels installed on
private roofs. It also spreads the power-price surcharge which has
funded these subsidies more equally among businesses. Many
companies had previously been exempt because they operate in energy
hungry industries or decided to build their own power plants.
The EU had concerns that some German firms producing renewable
energy may have benefited unfairly from subsidies in the past. It
also said a surcharge imposed on imported electricity equated to a
customs duty and violated the bloc's internal market rules.
In response to the criticism, Germany agreed earlier this week
to allow foreign firms that import renewable energy to enjoy the
same conditions as Germany-based companies that produce energy
domestically.
German companies which generate power will now have to
contribute toward a fund that subsidizes renewables and 350
companies will pay back a combined EUR30 million ($40.8 million)
for what the commission considers unfair aid they received in 2013
and 2014.
Vanessa Mock in Brussels contributed to this article.
Write to Andrea Thomas at andrea.thomas@wsj.com
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