German renewables trade slams windfall tax plan

November 24 (Renewables Now) – The German authorities’s plan to introduce an influence worth brake that features a tax on windfall earnings generated by renewable vitality operators has confronted vehement opposition from trade gamers and associations.

The draft regulation that was introduced by the federal authorities on Tuesday will harm the funding local weather for renewable vitality in the long run and put the nation’s local weather targets in danger, based on the Federal Affiliation of Renewable Power (BEE).

The draft invoice stipulates that the skimming-off of windfall earnings ought to enter into pressure retroactively as of September 2022 and be utilized at the least till June 2023. The proposal doesn’t set a agency time-frame for the tax and offers an possibility for an extension till the tip of 2024, which is elevating issues and inflicting uncertainty within the sector, based on BEE.

Germany is exiting fossil vitality and on the identical time is wreaking havoc on renewable vitality, thus willingly and unnecessarily risking the progress made to date within the vitality transition, mentioned BEE’s head Simone Peter.

The draft invoice additionally goals to skim off revenues as a substitute of income and this deprives firms of a considerable amount of liquidity, which is urgently wanted for investments within the enlargement of renewables, Peter mentioned additional.

The draft regulation places renewable vitality at a drawback place in comparison with fossil fuels resembling coal or pure fuel, deters investments and isn’t legally safe, BEE defined additional within the assertion. The affiliation expects that the potential introduction of the regulation would set off a wave of lawsuits from throughout the trade.

A gaggle of three renewable vitality firms known as on the German authorities in an open letter to make amendments to the proposed regulation. Naturstrom, Inexperienced Planet Power and EWS Schoenau concern that the tax in its present kind would imply doom to medium- and long-term energy buy agreements (PPAs) that are an vital instrument for formidable wind and photo voltaic tasks.

Costs agreed in wind and photo voltaic PPAs normally are properly beneath the extent of the present spot market worth and if the federal authorities passes the present proposal, it’ll skim off these inexperienced PPAs not based mostly on their precise earnings, however on the idea of the spot market earnings that are a lot increased, based on the three firms.

The photo voltaic trade has additionally sharply criticised the draft which supplies for sturdy interventions within the photo voltaic market and a short lived skimming of income from operators of solar energy vegetation with a capability of over 1 MW, the trade affiliation BSW mentioned in a separate assertion.

The affiliation warns that the proposed laws would flip right into a brake for billions of investments within the vitality transition, particularly in subsidy-free photo voltaic tasks, and urges the federal government to amend the draft.

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