Germany eyes state aid to boost domestic production of solar and wind technologies

Better financing, hedging tools and support for innovation are needed to strengthen the production of energy transition technologies in Germany and Europe, economy minister Robert Habeck said. Strengthening production capacities is “important for the success of the energy transition and to secure jobs and value creation,” the Green politician said while presenting the results of a public consultation set up to increase production capacities of solar modules, wind turbines, power cables and grids. Financial support for the investment and the operating costs of energy transition technologies could be delivered through subsidies, he said, while hedging tools would cushion risks for manufacturers. Tax provisions could be tweaked to speed up the national expansion rate of renewable energy, along with possible cooperation with European projects, Habeck said, adding that state bank KfW would be involved in boosting investment security. He also counts on the EU's RePowerEU programme to fund potential tax credits.

Priority measures should now be “driven forward quickly and in a targeted manner” to scale up renewable power production and its transmission in Germany and Europe, Habeck said, stressing that “time is not on our side.” Germany aims to meet 80 percent of its electricity demand from renewable sources by 2030. To get there, 57 gigawatts (GW) of new onshore wind turbines, 22 GW offshore turbines and 150 GW of photovoltaic capacity must be built, a report by the German Energy Agency (dena) said, which summarised priorities. In addition to better financing, hedging, and innovation support, the government is also working to increase the availability of land areas, raw materials and skilled workers, as well as the toppling of administrative hurdles and long licensing procedures to drive the energy transition forward.