German Cabinet Ends Feed-in Tariffs, Reshaping Renewable Energy Market
The German Cabinet has approved two significant energy laws aimed at transforming the renewable energy sector. The first is a revision of the Renewable Energy Sources Act (EEG), which will end the current feed-in tariff system by January 2027. This system has been a cornerstone of Germany's renewable energy policy, providing fixed payments to producers of solar and wind energy. The second law, known as the Network Connection Package (NAP), seeks to enhance the integration of renewable energy into the market by accelerating grid expansion and digitalization. Economic Affairs Minister Katherina Reiche described these changes as a 'paradigm shift' in energy policy, emphasizing the need for renewable energy investments to be market-driven rather than subsidized.