German green power group sees threat to subsidies
Date: 24-Feb-03
Country: GERMANY
BEE said late on Wednesday that the ruling red-green coalition was under pressure from large industrial players that wanted specific savings to be spelled out in the reform package.
"We fear that big industry wants to cut its own environmental bills at the expense of all other consumers," BEE president Johannes Lackmann told Reuters.
"There is a tug-of-war going on behind the scenes between the large energy users and within the government that could threaten an important and efficient industry," he added.
Germany in the course of 2003 is due to reform its extensive provisions for renewable power going into the general grid under the Renewable Energy Sources Act of March 2000 (EEG).
EEG recognises that renewable power is not yet fully cost-effective but politically desirable because it is virtually free of emissions of greenhouse gases blamed for global warming.
It provides for above-market rates paid to producers and then spreads the cost among power consumers pro rata to usage.
The cost of power generated under EEG in 2001 amounted to 1.5 billion euros ($1.61 billion) and is estimated to have risen to between 1.8 and 2.2 billion euros in 2002.
Already eight percent of Germany's total power usage comes from renewable sources, where the green sector employs 130,000 and has propelled Germany into the group of global leaders in emissions savings.
The Green Party's Environment Minister Juergen Trittin last month proposed only minor EEG changes for a new law to run from January 1, 2004, which was welcomed by green power lobbies.
Trittin wants wind parks in favourable coastal locations to receive lower payments while more time would be given to operators of offshore wind projects to develop the technology.
But the BDI industry confederation recently said the collective system should be abandoned and renewables supported through tax monies instead, and monitored for efficiency.
Lackmann said if big consumers won, the private customer would face higher power bills.
"There are other ways to cut power bills, for instance by stopping utilities from helping themselves to high earnings from inflated grid fees and grid balancing costs," he said.