The parties of Chancellor Angela Merkel’s governing coalition have reached an agreement to hike the tendering volume in wind and solar auctions next year, and to lower a levy on power bills to finance Germany's renewables build-out.

The measures are part of a minor amendment to the country’s Renewable Energies Act (EEG) that had already been recast last year.

“The coalition parliamentary groups have agreed on improvements to the EEG,” economics and energy minister Peter Altmaier said.