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Merkel Advisers Urge Germany To End Green Energy Subsidies


Germany should scrap its clean-energy subsidies because the system has driven up electricity costs for consumers and hasn’t spurred innovation or reduced greenhouse gases, a group of government advisers said.

Adding renewable-energy plants in Germany doesn’t cut Europe’s emissions because they’re released elsewhere, the Commission for Research and Innovation said in a report handed to Chancellor Angela Merkel today. The uncapped aid provided by the system known as EEG — about 23 billion euros ($31 billion) last year — doesn’t encourage new technologies, it said.

“The EEG isn’t a cost-efficient instrument for climate protection nor does it have a measurable impact on innovation,” the commission said in the report. “That’s why there is no basis for the continuation of the EEG.”

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