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 €30 million ($40.8 million) for what the commission considers
unfair aid they received in 2013 and 2014.
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