Energy reforms will decide future of gas in Germany

By Annemarie Botzki 26 April 2016
Datteln coal power plant in Germany, where reforms could see 2.7 GW of lignite-fired capacity taken offline.  (E.On) Datteln coal power plant in Germany, where reforms could see 2.7 GW of lignite-fired capacity taken offline. (E.On)

The future of gas in Germany hinges on planned reform to the country’s costly renewable energy law (EEG) and attempts to phase out coal – both of which are proving controversial.

Germany’s coalition government proposed in mid-April that funding rates for renewable electricity under the EEG should no longer be fixed by the state, but would instead be determined by a market-based auction scheme from 2017. Subsidies for renewable energy will be determined in a competitive procedure in which plant operators submit bids for funding.