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[BUSINESS] · Germany · 2 sources

Germany plans phased cut to renewable energy feed-in tariffs

Germany's Ministry of Economics released a draft law that will gradually eliminate guaranteed feed‑in tariffs for new renewable‑energy installations. Starting in 2027, support will shift to projects that better match electricity generation to demand and avoid overloading the grid. The reform aims to boost the share of renewables in gross electricity consumption to 80% by 2030, up from about 58% today, and includes plans for additional auctions for wind‑park capacity. The government expects to spend roughly €16 billion this year on renewable‑energy support, while acknowledging that the rapid rise in solar‑photovoltaic output has strained transmission networks and led to occasional curtailments, for which producers can seek compensation.

The policy change is intended to encourage investment in technologies that integrate more smoothly with the electricity market and reduce the risk of negative wholesale prices, while still fostering the overall growth of Germany's renewable sector.