EU launches investigation into German renewable energy law

EU launches investigation into German renewable energy law

July 17, 2013 0 By Stephen Vagus

EU expresses concerns over renewable energy law in Germany

The European Union has announced plans to launch an investigation into one of Germany’s renewable energy laws. EU officials have expressed concerns that the law breaches competition regulations, thereby creating a problematic business environment. The law itself is meant to promote the growth of renewable energy through a variety of measures. The law itself has succeeded in this endeavor to some degree, but EU officials fear that it has made it extremely difficult for non-German renewable energy companies to operate effectively.

Law provides generous incentives to German companies

The renewable energy law is more than a decade old. It provides strong incentives to those that manage renewable energy systems. These incentives have helped these energy providers grow and have put a great deal of momentum behind the growth of solar energy, in particular. When Chancellor Angela Merkel entered office, she introduced some modest changes to the law that increased the financial support it provided to the solar energy field. No significant changes have been made, however, due to German states wanting to keep the law intact.

Renewable Energy InvestigationTime for reform may be now

Merkel suggests that the time to make major changes to the renewable energy law has finally arrived. The Chancellor has vowed to see the law reformed if she manages to win re-election in the coming months. Exactly what changes may be introduced to the law itself are still taking form, but these changes are likely to be influenced by the EU’s investigation into the matter. The investigation may require Germany to reduce the incentives it offers to domestic energy providers in favor of creating a more accommodating business environment.

Germany shows concern over future of its place in solar energy field

Much of Germany’s energy endeavors are based on solar power. The country has established itself as a leader in the solar energy field, but has been losing traction in this position as China has grown more interested in renewable energy. China’s formidable presence in the solar sector has sparked concerns that Germany may not be able to compete in the market in the future, unless serious changes are made to the country’s renewable energy laws.