New Amendments To The German EEG To Secure Continued Capacity Growth

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The German parliament passed a revision to the German Renewable Energy Source Act (the "EEG") on 30 June 2011 and the Federal Council (Bundesrat) approved the same on 8 July 2011.

The amendments to the EEG did not have the purpose to limit the investments in new renewable energy capacity and thus costs to the German state as was thought by some international spectators. In contract the amendments came in connection with a decision to abandon nuclear power by 2022 and intend to secure a continued growth in the renewable energy capacity in order to reach the ambitious goals of not less than 35% of renewable energy in electricity supply in 2020, not less than 50% by 2030, not less than 65% by 2040 and not less than 80% by 2050, e.g. more aggressive goals than earlier set forth, and goals that are now codified in the latest version of the EEG.