“The Energiewende is far from complete”

Germany’s next government will have to find a way to change the current system of energy surcharges, regulations and economic incentives, which “leads into a cul-de-sac”, Andreas Kuhlmann, head of the German Energy Agency (dena) says in an interview with Handelsblatt. The current system, centred on the Renewable Energy Act (EEG), “prevents innovation and has long ceased to fulfil its necessary steering function,” Kuhlmann argues. The dena head says more rigorous carbon emissions pricing represented a “reasonable” alternative to fund the energy transition, as it would effectively reduce emissions, rather than merely refinance investment in renewable energy sources.

Find the interview in German here (behind paywall).

See the CLEW article German carbon tax most efficient way to meet climate goals – study and the CLEW factsheet Germany ponders how to finance renewables expansion in the future for background.