Germany hopes to give birth to an “energy revolution,” replacing nuclear and fossil fuel sources with clean energy generators.
The law hopes to give consumers lower prices for renewable energy, and cuts subsidies for renewable power plants. It distributes the surcharge more widely, replacing a loophole that allowed some companies to claim exemption from the surcharge if they worked in energy-intensive sectors or provided their own power plants.
The law will come into effect on August 1, and will lead to an annual support for renewable of up to $27 billion, EU authorities claim. Last year over 25% of Germany’s energy came from renewable sources, and their feed-in tariff plan was widely considered a success and responsible for Germany’s booming solar market.
This follows a separate EU probe against Germany’s 2012 renewable energy plan.
Despite EU concerns about Germany’s pricing models, it is being looked at by nations around the world hoping to replicate Germany’s “energy revolution.” India in particular plans to follow the solar pricing model to bring more renewable energy to the developing nation. Germany’s usage of renewable sources gives the nation energy security at a time when imports through Ukraine are at risk, and this strategy is appealing to other nations with underdeveloped energy sectors and nations where energy infrastructure is not up to international standards.