The country’s successful feed-in tariff (FIT) scheme, which has paid developers per-kWh subsidies since 2000, is to be replaced from this summer by a new national tendering system for all projects over 1MW. This means the government will have much tighter control over the amount and the cost of renewable energy that comes on line.
The manner in which Berlin sets up this system will be closely watched across Europe, as influential Germany will be among the first countries to adopt EU state-aid rules announced in April 2014, which call on member states to shift away from FITs to more market-based systems.
