Power companies will build a record amount of solar-energy capacity in Germany this year, or two-thirds more than they added last year, seeking to take advantage of subsidies, New Energy Finance said.
About 2.5 gigawatts of production potential may be switched on this year compared with a record 1.5 gigawatts last year, said Martin Simonek, solar analyst in London at New Energy, which provides research and data on energy and carbon markets. He was citing government data.
This “conservative estimate” for installations this year would take the nation’s total to 7.8 gigawatts, Simonek said. That’s the equivalent of about four coal-fired stations.
“There is a huge rush” to connect projects, because consumer subsidies may fall by about 10 percent for generators that fail to meet a Dec. 31 deadline to begin operations, Simonek said on Friday by phone.
The German government is reviewing possible cuts to the price paid for renewable power.
“There’s a rumor that tariffs will decrease by as much as 30 percent,” Simonek said.
In Germany, where consumers are charged more for renewable power to promote its development, new installations come at a price. This year’s new capacity alone will cost German power consumers 17.5 billion euros (US$26 billion) for power in the 20 years starting next year, about five to six times what conventionally generated electricity would cost, New Energy estimates.
Germany is seeking to boost generation from clean sources to help protect the climate and help encourage industrial expansion in the industry.
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