German Government Approves Renewable Energy Overhaul and Grid Package Reforms
Politics

German Government Approves Renewable Energy Overhaul and Grid Package Reforms

According to a report in the Handelsblatt citing “government circles,” the Federal Government plans to approve the reforms to the Renewable Energy Sources Act (EEG) and the grid package on Wednesday. Prior to this decision, the involved ministries held negotiations regarding the laws until late Tuesday evening.

Through these new laws, Economics Minister Katherina Reiche (CDU) aims to make the energy transition more cost-efficient. Key aspects of the planned reforms include discontinuing the flat-rate subsidies for solar installations and restricting the connection of renewable energy plants to the grid in areas that are already overloaded.

Reiche’s proposals had previously generated strong opposition within the industry, and the Environment Minister, Carsten Schneider (SPD), had expressed concerns in the government. However, after some parts of the legislation were softened, an agreement has now been reached. The specific nature of these amendments was not disclosed at the outset of the evening.