President of Cartel Office Calls for Changes in EEG Feed-in Tariff System

After the recently announced  increase in feed-in tariff costs pursuant to the Renewable Energy Source Act (EEG), Andreas Mundt, president of the German Cartel Office, reiterated his call for changing the financial support system for renewable energy.

It is high time to adapt the EEG funding system to the market economy, Mr Mundt told the business newspaper Handelsblatt. As as first step he suggested again to peg feed-in tariffs to prices at the energy exchange. EEG feed-in costs exceeding prices at the spot market eventually have to be borne by consumers. Feed-in tariffs resulted in high costs for consumers, Mr Mundt said. Gradually adapting them to market conditions would lead to more cost-efficient results, both with respect to conventional forms of energy and in relation to the different forms of renewable energy.

Like many other papers in recent days, Handelsblatt points out that the increase of the EEG costs was largely due to the strong growth in solar installations in Germany. The paper quotes Thomas Bareiß, Energy Policy Coordinator of the conservative CDU/CSU parliamentary group as saying that the solar expansion targets for the next three years had already been reached in 2010. If expansion continued at this rate, the government had to put a stop to it. Yearly solar expansion should not exceed 2,000 MW, Mr Bareiß said. He demanded to amend the EEG funding system accordingly.

Source: Handelsblatt

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