The renewable energy sector has rejected a new plan by the German government to create a so-called ‘Strompreisbremse’ – or power price brake – that would skim off windfall gains on wholesale electricity markets via a tax on excessive profits.

The tax would be used to subsidise the power bills of lower income earners, retirees and students as part of a €65bn ($64.4bn) energy crisis relief package that the three-party coalition of Chancellor Olaf Scholz agreed on early Sunday after all-night negotiations.