Day: June 5, 2020

Germany’s Green Power Finance Is Becoming Unaffordable

(Bloomberg) — The German program that’s spurred the nation’s switch to green power is buckling under the weight of surging costs and needs an urgent fix.

That’s the assessment of one of the scheme’s chief designers, Hans Josef Fell. Designed in 2000 to enable Germany to meet United Nations pledges on climate change, it has pushed renewable energy to make up over 50% of the nation’s energy capacity.

Yet the system’s increasing costs have become glaring in the during the coronavirus pandemic, the veteran Green Party lawmaker said. High and guaranteed payments made to investors in clean power plants are the problem Fell said in an interview.

German power consumers have to contribute to help finance the payments through a surcharge in their monthly electricity bills, and a quirk of how they’re calculated threatens to send the program’s costs skyrocketing, he said.

Power consumers make up the difference between payments

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