German election to cause reductions in renewable energy subsidies?

In Germany, with a change in the structure of the federal government imminent after election results made a center-right coalition of the Free Democrats and the Christian Democrats all but inevitable, a report was filed in Environmental Finance that the country will be poised to reduce its EEG, the national renewable energy subsidy law that provided large feed in tariffs for solar and other technologies.

In Germany, solar power is paid $0.36-$0.62 per KWh and wind energy plants have received $0.134. Analysts  are confirming that feed in tariffs and subsidies may be reduced at a faster pace under the new coalition than the previous government, but warned that the unhappy experience with the German biodiesel, where a drop in subsidies resulted in more than half of biodiesel plants in the country going idle or out of business, would cause the government to go slow in scaling back on the subsidy program.

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