Germany examines state guarantees for wind and solar power

Germany is examining the introduction of state guarantees for investments in wind and solar power to improve the country’s industrial potential, economy minister Robert Habeck has said. To promote the energy transition and scale up renewable power capacity, state support could include production or purchase guarantees, which can partially offset uncertainties regarding project permits, the Green Party politician said. “It might make sense for the state to step in with a guarantee and say 'you can order before the approval is there', then the ramp-up of the industry will be correspondingly faster,” Habeck said following a summit with representatives from the renewable power industry industry and grid operators, news agency Reuters reports. In addition to financial guarantees, structural reforms to accelerate planning approval are needed both nationally and at the European level, Habeck added.
The introduction of CO2 footprints for renewable energy components is also being discussed with the EU, according to Reuters. This is supposed to support local and decentralised power production and means “wind turbines or solar panels would not have to be transported halfway around the world,” Habeck said.

Supporting renewable projects in Europe has become “even more urgent” following the introduction of the Inflation Reduction Act (IRA) in the U.S., which aims to ramp up green electricity but ties subsidies to quotas for using products made in North America, Habeck said. Finance minister Christian Lindner had warned the IRA could pose a “trade conflict” between the EU and the U.S.. The government plans to present more concrete plans in the coming weeks. Germany aims to massively ramp up renewable capacities to achieve its climate goals and reduce its dependence on fossil fuels. The country aims to produce 80 percent of its electricity with renewable sources by 2030.