The German Renewable Act has successfully increased renewable energy capacity from 6% of total generation capacity in 2000 to 16% in 2009. However, in order to compensate for higher demand, lower wholesale prices and last year's levy deficit, German consumers will have to foot a bill of E13.5 billion in 2011. This should be a warning to other countries of the immediate costs of such policies.
Recent signals from the EEX indicating that it is planning to launch a gas trading contract from autumn 2006 will give the German wholesale gas market a much needed boost. However, despite this progress, a meaningfully liquid wholesale gas market in Germany remains a long way away.
The German government has cancelled plans that would oblige refineries in the country to blend petrol and diesel with 10% biofuels. Although German environment minister Sigmar Gabriel has stated that this does not change Germany's commitment to reaching the EU's target of 10% biofuels by 2020, the plans raise doubts about the country's ability and willingness to achieve the EU's goals.
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