Environment
Germany to scale back renewable subsidies amid power grid strain
Key Points
Germany plans to scale back renewable-energy subsidies in a sweeping overhaul of its funding system, as surging solar output puts growing strain on the country’s power grid. From 2027, new renewable generators should receive support “in a way that benefits both the market and the system,” according to a draft law published by the Economy Ministry late on Friday. That means rewarding projects that respond more closely to electricity demand and do not worsen grid congestion.
Germany plans to scale back renewable-energy subsidies in a sweeping overhaul of its funding system, as surging solar output puts growing strain on the country’s power grid.
From 2027, new renewable generators should receive support “in a way that benefits both the market and the system,” according to a draft law published by the Economy Ministry late on Friday. That means rewarding projects that respond more closely to electricity demand and do not worsen grid congestion.
Fixed feed-in tariffs...