In order to defend its domestic market, Economy Minister Robert Habeck on Tuesday said Germany has identified three key measures, including financial support to advance energy transition technologies while stepping up green power generation and transmission.
“We must strengthen production capacities for renewable energies in Germany and Europe,” he said at a press conference.
“This is important for the success of the energy transition and to secure jobs and value creation.”
Habeck cited financial support for investments, hedging instruments, and subsidizing innovation as the three main strategies. In order to facilitate the swift national rollout of wind and solar power and potential collaboration with European projects, the nation would also make tax provisions adjustments, he said.
He stated that the most recent plans are in line with the European Commission’s proposal from February 1 to permit higher levels of state aid.
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In addition to defending themselves, they had to face international competition and permit manufacturing competition with other economies, like the United States, which has proposed tax credit incentives for renewable resources.
The government would be involved through the state-owned bank KfW, but Habeck insisted that the government’s role was that of a temporary enabler to win over investors, not a long-term shareholder.
By 2030, Berlin hopes to produce at least 80% of its electricity from the sun and wind. This goal has become more urgent as a result of the decline in Russian fossil fuel exports to Germany in 2017. In 2022, the share was 49.6%.
A paper outlining key measures stated that in order to get there, 57 gigawatts (GW) of new onshore wind turbines, 22 GW of new offshore turbines, and 150 GW of photovoltaic capacity must be built.
Germany has grown to be a significant buyer of solar technologies, but Joerg Ebel, president of the German solar industry association BSW, said that the country has lagged behind in terms of production capacity.
Story adapted from Reuters
