German Chancellor Olaf Scholz has expressed his conviction that 80% of Germany’s electricity will come from renewable energy sources by 2030.
The official’s statement came during an employee event of the energy company RWE.
Scholz highlighted the recent sharp rise in the number of authorizations for solar and wind plants. “Now we have to make sure that they are not only authorized quickly but also built quickly.”
RWE AG is a German multinational energy company headquartered in Essen. It generates and trades electricity in the Asia-Pacific region, Europe, and the United States (US).
France and Germany are currently grappling to find a middle ground amidst the ongoing debate over Contracts for Differences (CFDs).
CfDs are financial agreements between electricity producers and governments. Under CfD terms, the government agrees to pay a fixed price per unit of electricity generated, regardless of the prevailing market price.
If the market price exceeds the CfD strike price, the producer pays the difference to the government, but if the market price falls below the strike price, the government pays the difference to the producer.
By providing a guaranteed price for electricity, CfDs aim to support investments in renewable energy projects.
Despite unseasonably warm temperatures in October, Europe is slowly heading into winter, marking the second winter since the beginning of the conflict in Ukraine, which prompted Russia to cut off gas supplies to the continent.
Following a surge in prices last winter, when gas and electricity bills nearly doubled across European capitals, the European Union (EU) decided to take necessary actions.
In March, the European Commission proposed reforms to boost renewable energy sources, better protect consumers, and enhance industrial competitiveness.
France is supported by other pro-nuclear countries, such as Hungary, the Czech Republic, and Poland, while Germany can count on the support of Austria, Luxembourg, Belgium, and Italy.
