BDEW Criticises 2015 Budget Bill for Energy Sector, Particularly Heating

The Federal Association of the Energy and Water Industry (BDEW) has criticised current plans for state spending in the energy sector, in particular for heating, foreseen in the bill on the federal budget for 2015. The bill was introduced into Parliament yesterday.

BDEW criticism relates to the following four aspects.

1. Heating Sector and MAP

 “The government is still not making use of the enormous CO2 savings potential in the heating market. If we want to reach our climate goals for 2020 the government finally has to make greater efforts”, Hildegard Müller, Chairwoman of the General Executive Management Board said. She called cuts to the Renewable Energy Incentive Programme for the Heat Market (MAP) in the federal budget for 2015 (see Section 0903, page 42 compared to the budget for 2014, Section 0903, page 44) as well as in the Energy and Climate Fund (EKF) counterproductive.

MAP is a main support tool of the government for investments in renewable energies providing heating and cooling, mainly in existing buildings as well as for commercial and industrial processes.

2. KfW Programme for Energy-Efficient Renovations

Besides, BDEW demands to amend the programme on energy-efficient renovations managed by the state-owned development bank KfW. “In their coalition agreement CDU/CSU and SPD (the ruling government parties) promised to increase funding and to simplify the programme. This has not happened yet”, Mrs Müller said, adding that investors needed planning security if low renovation numbers were to increase. Besides a well implemented renovation programme would give an economic boost to trade and crafts.

3. Financial Means for EKF

Furthermore BDEW wants better funding for EFK, which it calls the main tool for implementing the energy transition towards a mainly renewable energy supply.

EFK funds are spent for various support programmes relating to energy efficiency, renewable energy, energy storage and grid technology, energy-efficient renovation, national and international climate protection as well as electromobility (see Section 2 para. 2 sent. 2 EKFG).

4. Extension of Reduced Tax Rate for Natural Gas Fuels

Lastly, BDEW called on the government to keep its promise to extend the reduced tax rate for natural gas used as fuel beyond 2018 (see Section 2 para 2 Energy Tax Act (Energiesteuergesetz). Gas-powered cars were marketable and could help to reduce CO2 emissions significantly, BDEW said.

Source: BDEW

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