European Union Approves German Renewable Energy Scheme worth 28-Billion Euros

A German renewable energy program worth 28 billion euros has been approved by the European Union. The arrangement is focused on quickly growing utilization of wind and sunlight based power. It is intended to achieve Germany’s goal of generating 80 percent of its electricity from renewable sources by the year 2030. It replaces a current renewables support program and lasts until 2026.

The European Commission asserts that the plan is necessary and appropriate to promote renewable energy and reduce greenhouse gas emissions, and that the positive impact renewable energy will have on the environment will outweigh any potential competition distortions. Margrethe Vestager, competition policy chief of European Union, stated in a statement, the German Renewable Energy Act 2023 scheme will contribute to further decarbonise electricity production.

In addition, the scheme also compensates producers of renewable energy with a premium. A feed-in tariff that guarantees a certain price for the electricity produced by small generators is an option.

To achieve Germany’s objective of reducing its net emissions of greenhouse gases by 2045, it will be essential to increase production of clean energy. It will also partially fill the energy supply gap that Russia created when it stopped sending most of the gas to Europe this year. Germany relied heavily on Russian gas.

Germany will also gradually end its support for renewable producers during times of low power prices by 2027 in order to avoid paying businesses twice. The European Commission said that Germany’s inexhaustible state support was restricted to the base vital and included protections to limit contest mutilations. In government auctions, businesses must submit bids for the assistance.

The divide between wealthy EU nations that are able to accommodate additional borrowing and cash-strapped governments that are frantically searching for additional funds was brought to light by the German initiative, which was announced in October.

Ursula von der Leyen, president of European Commission said that, they are seriously risking fragmentation without a joint European solution, which is why it is paramount that they preserve a level playing field for all without mentioning Germany.