Germany to Offer Cash Sweeteners to Revive Collapsing Wind Power

(Bloomberg) --

German Chancellor Angela Merkel’s government may try to tame growing opposition to onshore wind developments by offering cash sweeteners to local councils and consumers.

A plan drawn up by officials Berlin suggest municipalities could earn as much as 20,000 euros ($21,600) a year for each newly-erected wind turbine in their districts from 2021, according to a copy of the document seen by Bloomberg News. Wind developers would pay for the initiative, which assumes active council support for new projects.

Power consumers may also benefit directly from new wind projects in their regions, according to the government proposals. Local councils may opt to forgo a cash bonus and offer it to cut local residents annual power bills by as much as 200 euros ($216).

Bloated by taxes and a mandatory surcharge to support green power, German retail electricity prices are now the most expensive in Europe.

Power charges and voters’ growing aversion to new wind parks are forcing a rethink of energy-shift policies in Berlin. The government needs to win back support for its flagship wind power strategy after as many as 12,000 local groups sprang up in recent years to halt new projects.

New onshore wind installations have fallen to a trickle, jeopardizing emission-reduction targets for the energy sector.

The proposed cash bonus for councils aims to “boost local acceptance” of wind power and will be embedded in a bill that may be passed before the summer recess, according to the paper.

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