Germany is planning to cut back and reform its support to producers of renewable energy.
The subsidies are estimated to cost the state 20 billion euros this year.
The support is designed so that producers of wind power and solar energy are guaranteed a certain minimum price. This has caused the state's costs to swell when energy prices have been low.
According to the German government's budget proposal, the support will not be paid out to medium-sized and large projects from January next year if energy prices are negative. The idea is to abolish the subsidies entirely when the energy market has become sufficiently flexible and there is sufficient storage capacity.
Germany's climate goals include, among other things, that 80 percent of energy production should consist of renewable energy. The plans to start cutting back the subsidies as early as next year can create uncertainty around future investments, reports Bloomberg.
