The German government announced sweeping reforms of the country’s renewable energy policy on April 8, 2014. The draft law maintains aggressive targets; however, renewable energy will now be subject to annual caps and competitive bidding beginning in 2017. The change comes as German consumers are experiencing significant increases in the cost of power resulting from renewable energy incentives.
Germany is a dynamic testing ground for renewable energy policy, integration, and business models. The recent course correction in policy was necessary to slow ballooning costs of renewable energy feed-in tariffs, which pay a set price for the expected lifetime of a renewable system.
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