Although there is a common understanding that the renewable energy legislation needs fundamental reform, the federal government’s plans are not going uncriticized by opposition parties, who have a majority in the Bundesrat. Meanwhile, the minister for the environment of the state of Bavaria attempted to reach a compromise that would include either short-term reductions of energy taxes for consumers or an exemption of the renewable energy surcharge from value-added taxation (VAT). He also proposed replacing the fixed renewable energy pricing with a system of predetermined fees the amount of which would depend on the type of producer. This alternative would allow the renewable energy price to fluctuate with the market price and would protect consumers from unnecessary taxation in case the market price drops.
We can only hope that this debate results in Germany finding a viable way to encourage renewables and spread the cost equitably. If it does, it could be a model for other nations.
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