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Germany's Merkel: Aims For Deal On Solar Cuts By Summer Break

Germanys Merkel: Aims For Deal On Solar Cuts By Summer Break
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Τετ, 23 Μαΐου 2012 - 17:49
German government officials Wednesday sought to dispel doubts about the country's shift toward renewable energy as the transition is running behind schedule and has led to concerns about power shortages.
German government officials Wednesday sought to dispel doubts about the country's shift toward renewable energy as the transition is running behind schedule and has led to concerns about power shortages.

German Chancellor Angela Merkel said her government aims to reach a deal with the upper house of parliament about a planned heavy cut in solar subsidies before parliament's summer break that starts in July. Economics Minister Philipp Roesler said a plan about grid expansion will be presented next week.

"We want the success, all of us, everybody in his or her own responsibility," Merkel said after a meeting with the country's 16 state governors.

Policy makers were discussing grid expansion, offshore wind power and cuts in solar subsidies.

The government's proposed sharp cuts in solar subsidies have been suspended by German states represented in the upper house, or Bundesrat. The planned law, approved by the parliament's lower house, or Bundestag, in late March, foresees subsidy cuts of up to 30% for solar energy. Following approval by the Bundesrat, the law was to take effect retroactively to April 1.

At present, a mediation committee with members from both federal and state governments is reviewing the proposal.

The government has so far failed to present a plan for filling the void in its future energy capacity, a year after Merkel decided to rapidly withdraw from nuclear power in the wake of the Fukushima disaster.

It has also yet to outline how it plans to finance the transformation of a primarily fossil fuel-powered and nuclear-powered generation sector to one that is more reliant on sustainable forms of energy, such as offshore wind and solar power.
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