Germany is to table a €130 per megawatt hour cap on the earnings of wind, solar and nuclear generators, according to a draft law seen by Bloomberg News.
The German government plans to reclaim some of the profits being made by electricity companies on the back of high power prices to fund a €54bn consumer aid package outlined this month.
The law is scheduled to pass the upper house of the German Parliament on 16 December and go into effect on 1 January.
It will apply for 10 months and be backdated to the start of September 2022, according to Bloomberg. The measures are intended to last until the end of June 2023 but could be extended to the end of 2024.
Germany joins a growing number of European countries preparing to set their own national caps on renewable energy earnings that fall below the European Commission’s suggested levy of €180/MWh.
Lignite and oil plants in Germany would meanwhile be taxed at €83/MWh and above €280/MW respectively under the new law.