A German panel of experts has called for the abolition of the Renewable Energy Sources Act (EEG). They argue that maintaining growth in the renewables sector has led to price hikes, but hasn't promoted climate protection or more innovation. According to Dietmar Harhoff representing this panel, supporting green electricity cost 23 billion euros in 2012.
Measured by the increase of patents and publications, Harhoff said there has also not been a significant link between the promotion of renewables and innovation. In fact, the EEG hinders innovation because the risk of investing in new technologies is not rewarded by the market. Instead, Harhoff urged a focus on emissions trading.
The Federation of German Industries (BDI) has strongly supported the committee's conclusions. The Federal Ministry of Economics and Energy has, however, strongly rejected the criticism of the advisory board, pointing out that when the EEG was first introduced, Germany obtained 6 percent of its energy from renewables. About 14 years later, the share of renewables in the energy mix has risen to just below 25 percent.
Within the next few months, Economy Minister Sigmar Gabriel is expected to present a reform of the EEG designed to lower consumer prices.
-tk-