Germany Sets Windfall Tax At 90%

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

From Bloomberg:

Germany has set out its plan to claw back 90% of the earnings from some clean power generators as the government seeks funding for its consumer aid package.

The government is planning to skim earnings above €130 a megawatt-hour for solar, wind and nuclear, according to a draft law seen by Bloomberg News. Politicians are trying to reclaim some of the profits that companies like RWE AG are making from high power prices.
The windfall tax will be applied to electricity producers based on the fuel they use. Lignite plants will be taxed on earnings above €82 a megawatt hour and oil plants above €280. The measures will apply for 10 months, backdated to start of September 2022, until end June 2023 and could be extended to end of 2024.

Germany set out a €54 billion package on November 22 that puts a cap on gas prices for companies and households from next year with more earmarked for electricity. The aid for bills will be partly financed by the windfall tax, from which the government expects to raise a double-digit billion-euro amount, according to officials.

The level proposed is lower than the European Commission’s suggested level of €180 a megawatt hour. Renewable generators in Germany have warned that such a levy will deter investment needed to help the nation wean itself off imported fossil fuels.

The more than 200-page-long law proposal, which is supposed to pass cabinet on Friday, has already provoked widespread criticism from energy lobby groups. Andreas Jung, a lawmaker from the oppositional Christian Democrats, said that the levy will “suffocate” renewable energy companies because they have been investing a lot of money in new technology.

The law is scheduled to pass the upper house on December 16 so that it can go into effect on January 1.

https://www.bloomberg.com/news/articles/2022-11-24/germany-sets-windfall-tax-at-90-for-clean-power-generators?mc_cid=12863075fa&mc_eid=4961da7cb1

Germany it appears is following suit with the UK measures announced last week, although the rates are different.

I do have to laugh though when I hear the renewable lobby complaining that a windfall tax will deter investment. If wind farms cannot make a profit with a price of 130 euros/MWh, then clearly they are not the cheap alternative we have been told.

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Mike
November 27, 2022 10:25 pm

Germany has set out its plan to claw back 90% of the earnings from some clean power generators as the government seeks funding for its consumer aid package.”

Does that mean high power prices?

Last edited 2 months ago by Mike
Disputin
Reply to  Mike
November 28, 2022 4:29 am

Of course!

It doesnot add up
Reply to  Mike
November 28, 2022 4:33 am

I think it means power cuts. Not sure how EUA carbon tax is supposed to be dealt with, but as the tax would eat up all the revenue allowance on lignite, I assume that it is a deductible. Otherwise all lignite stations would shut down as loss making unless the price is sky high enough to cover costs on 10% of revenues.

Things are also precarious for oil (I assume here meaning diesel and natural gas generation, though the Bloomberg article lacks clarity). But €280/MWh is breakeven for €140/MWh gas in a CCGT plant, so if gas prices go higher the CCGT won’t run. Diesel operates at efficiencies of 3-4MWh per tonne of diesel. The price is around $900/tonne currently. So that is a cost of $225-300/MWh. Diesel prices have already been as high as $1665/tonne. A diesel shortage is looming as a result of sanctions on Russia.

guidvce4
Reply to  Mike
November 28, 2022 4:33 am

Yes. Higher power prices. All encouraged by the raising of taxes on the so-called “windfall profits”. There is no such thing as windfall profits, except when the ideological and incompetent clowns decide there is. That would be the nutjobs running most governments.
I had this idea for decades that the German people were very smart, or something like that, but they have set out to prove to everyone how really stupid they are by electing the folks into government who now are destroying their society. To be fair, we here in US are not doing much better in who we put in charge of our nation. Too many gullible sheeple in most countries, I guess. Gonna be a problem in the near future when the folks have had way too much of the BS being spewed by the elite.
Just sayin’.

MarkW
Reply to  guidvce4
November 28, 2022 8:22 am

Oil prices in the US dropped precipitously after Reagan killed Carter’s “windfall” profits taxes on oil.

Duker
Reply to  MarkW
November 28, 2022 1:35 pm

It also fell steeply during Obamas time, after rising.

Its more that theres a combination of commodity cycles and supply and demand pressures – with speculation kicking in when prices are climbing which drives them higher.
Covid crash in demand was another ‘cycle’

RWT
Reply to  Duker
November 28, 2022 3:27 pm

The horizontal drilling/multistage hydraulic fracturing revolution that took US production from 5.5 million bbl per day to 10 million bbl per day during the Obama administration.

Not cyclical at all, it was tech and innovation. Nor is covid shutdowns a cycle – at least I hope not.

Yirgach
Reply to  RWT
November 28, 2022 3:42 pm

Covid shutdowns are a political cycle.
We are entering another one at the moment.

MarkW
Reply to  Duker
November 28, 2022 3:28 pm

It fell after Reagan cut windfall taxes because oil developers started looking for oil again, now that they were allowed to profit from it.
It fell during Obama’s term because private oil companies developed fraking which greatly increased supply, it had nothing to do with Obama.

Perhaps if you weren’t so desperate to defend Democrats, you might get the connections right.

B Zipperer
Reply to  Duker
November 28, 2022 3:34 pm

Duker:
IIRC, gas prices under Obama 2009-2016 mainly fell due to fracking, not due to his policies (though he periodically tried to take credit for it).
[Actually, his EPA spent 3 years and ~$36 million trying to find an environmental reason to kill fracking, but could not. No evidence of any water table pollution was found.]
Also, the Saudis tried to kill-off fracking by over-producing (driving the price down) but finally gave up. They did bankrupt a number of small oil companies, but the oil/gas fields were just bought by others [at a big discount!] to begin production later. btw, Where was the government’s “windfall loss” subsidy for the soon to be bankrupt oil companies? Lol

MarkW
Reply to  B Zipperer
November 28, 2022 8:30 pm

When ever government plays, it’s always heads they win, tails you lose.

Drake
Reply to  Duker
November 29, 2022 9:09 am

I think, in addition to what others have commented re fracking, you have missed that due to Obama’s and the Democrat party’s successful implementation of their economic policies, that the 8 years of Obama had the worst ever recovery from any recession in history, other than the great depression, also rued over by a Democrat president and Democrat congressional control.

Really poor economic growth, all other things being equal, often keeps prices for energy lower. That compounded with fracking on PRIVATE land, kept oil and gas prices down.

US energy prices are high NOW because of Brandon energy executive orders, most slowly being overturned in the courts, and the impetus of the green administrative state coming back into full control after the TRUMP! administration. Those leftists already had plans in place to crush US oil and gas production, and began implementing those plans Jan. 20, 2021. They didn’t even need to get direction from Brandon.

MarkW
Reply to  Drake
November 29, 2022 11:33 am

The reason the Great Depression wasn’t just another run of the mill recession was because FDR used it as an excuse to have government take over much of the economy.
There were two main reasons why the economy was so good after the war.
The first is that FDR had to rescind most of his regulations so that factories could make the war material needed to win the war. He died before the war ended so he never had a chance to re-implement his program.
The second was that after the war, the US was almost the only first world country that hadn’t had it’s factories bombed to non-existence during the war. The other countries that weren’t heavily damaged all had small populations and small economies.

MarkW
Reply to  Mike
November 28, 2022 7:41 am

In the economic world of the left. If unforeseen events should tank your profits and put your company out of business. That’s your problem.
On the other hand if unforeseen events should cause your profits to spike, government gets most of it. After all, you didn’t do anything to earn it, so it’s not yours.

Neo
Reply to  Mike
November 28, 2022 8:59 am

If this doesn’t kill the German renewables industry, nothing can.

The use of any kind of “windfall profits tax” will kill investment .. in anything

RWT
Reply to  Neo
November 28, 2022 3:31 pm

No you don’t understand how the lunatic world of Keynesian economics works. They will simply increase the subsidies to make up for their lack of profit due to tax taking all the profit.
The consumer and legitimate industries will end up footing the bill in the end like they always do – until they finally finish off capitalism through their lunatic policies. Which of course they will blame on capitalism itself and claim that is the reason we need to hand over total control to their ilk.

Editor
November 27, 2022 10:59 pm

Lignite €82, oil €280, solar, wind and nuclear €130. I suppose there’s some logic but it isn’t all that easy to see. I surmise that (a) when there is a power shortage no-one will bid to supply any electricity, and (b) all investment in all electricity sources will stop. Wind and solar can’t fill the gap when there’s a shortage because shortages occur when there’s no wind or sun. Oil and nuclear can’t bid because there are very few oil or nuclear power stations operating in Germany. That leaves lignite generators who will surely not bid at all. Then when the government eventually faces reality and allows an open market again, there won’t be enough power because there won’t have been any investment. The exact opposite of what is needed to keep the lights on and to keep the German people warm in winter.Brilliant.

DavsS
Reply to  Mike Jonas
November 28, 2022 5:50 am

Never underestimate the ability of politicians to make a challenging situation much worse.

MarkW
Reply to  DavsS
November 28, 2022 7:44 am

There is no problem so massive, that government intervention won’t make it worse.

Nicholas McGinley
Reply to  DavsS
November 28, 2022 2:47 pm

They created every detail of this “challenging situation”.

MarkW
Reply to  Mike Jonas
November 28, 2022 7:43 am

And when, thanks to government regulations and taxes, private businesses fail to produce all the power needed, the same government lackeys will declare that this proves that the private market can’t be trusted with something as vitals as power generation, and the whole industry needs to be nationalized.

Dennis Gerald Sandberg
Reply to  MarkW
November 28, 2022 3:05 pm

You are exactly correct, that is what will happen in Germany, and it’ll happen quickly.(<3 years). The rest of Europe will promptly follow… to their wind and solar doom.

RWT
Reply to  MarkW
November 28, 2022 3:33 pm

We’re living through Atlas Shrugged on our way to 1984.

Nicholas McGinley
Reply to  Mike Jonas
November 28, 2022 2:43 pm

These are people who think the planet is in a climate crisis.
They do not know the difference between “climate change”, and regular old same-as-it-ever-was bad weather.
They think a highly industrialized country which has an economy highly dependent on manufacturing, can replace reliable energy sources with ones that cannot even theoretically be made to be reliable.
They think the whole world can switch to electric cars when there are nowhere close to enough batteries being made, and no way to make enough of them, given the supplies of raw materials.

And none of what they are doing could even make any difference in global CO2 anyway, and yet they willingly impoverish themselves to do it.

IOW, these are very stupid people.
Ignorant of the lessons of history, and utterly lacking in common sense

The only questions are, how bad will things get, and how fast will they get that bad?
And what will the people do when TSHTF?

John Pickens
November 27, 2022 11:11 pm

Clean Power, I don’t think these words mean what the German government thinks it means. PV silicon, neodymium magnets, composites, aluminum, copper, lithium, cobalt, silver. Nothing “clean” about the unnecessary expenditure of these resources to make power systems with a net negative energy balance.

Dennis Gerald Sandberg
Reply to  John Pickens
November 28, 2022 3:09 pm

Energy Return on Energy Invested (ERoEI) for photovoltaic solar systems in regions of moderate insolation
https://www.sciencedirect.com/science/article/pii/S0301421516301379
 
Note: This paper finds that the energy returned on energy invested for solar in Germany and Switzerland is 0.82 (less than 1, a net sink, loss of energy) with an assumed life span of 25 years. Economists have determined that an energy source <5 ratio is unsustainable (uneconomic, a drag on the economy).

MarkW
Reply to  Dennis Gerald Sandberg
November 28, 2022 3:32 pm

From everything I have read, 25 year life for solar fields is too generous. Did they account for the decrease in production over that time as well?

B Zipperer
Reply to  Dennis Gerald Sandberg
November 28, 2022 4:34 pm

Dennis:
Thx for the link!
Also, it stated that 1) doing the EROIE for Spain’s solar PV the result is 2.3 (better insolation, but still uneconomic!) and 2) you can NOT compare the IEA’s EROIE calculations between renewable vs oil/gas/coal/nuclear since they use different methodologies for the 2 classes.

This reminded me of a favorite [ alarmist ! ] quote:
James Hansen: “Suggesting that renewables will let us phase rapidly off fossil fuels in the United States, China, India, or the world as a whole is almost the equivalent of believing in the Easter Bunny and Tooth Fairy.”

RWT
Reply to  John Pickens
November 28, 2022 3:36 pm

Don’t forget lead, arsenic, gallium and cadmium.

Petit-Barde
November 27, 2022 11:51 pm

Burocratic prices regulation has never and will never end well. The problem is decades of uninvestment in hydro oil gas and nuclear energy – mostly overtaxed – and over invesment in useless subsidised wind and solar energy.
This nefarious green ideology is crashing in a sort of inescapable slow motion catastrophy scene against the wall of reality while nothing is done to actually address the problem at the root.

1saveenergy
Reply to  Petit-Barde
November 28, 2022 3:34 am

“inescapable slow motion catastrophy”

Like two large ships on an impact course, have done everything to prevent contact … and failed. You can only sit back & observe as the physics of Mass & Dynamics take control, it’s known as ‘the agony of collision‘.

_Jim
Reply to  1saveenergy
November 28, 2022 5:34 am

Touche’. I like the analogy!

186no
Reply to  Petit-Barde
November 28, 2022 10:26 am

If the “predicted by many” cold snap in December arrives in Europe ( potential and ironically from “The East, I suspect that German politicians, past and present, responsible for this debacle are going to feel intense heat from German citizens who cannot heat their homes.

MarkW
Reply to  186no
November 28, 2022 10:31 am

Are politicians a good source of energy?
Unfortunately they have proven to be renewable.

Ron Long
November 28, 2022 1:08 am

If you subsidize something you get more of it, and if you sanction something you get less of it? Basic Economics has changed? It certainly appears that Germany (EU included) is about to make things worse, all in a reckless and ill-advised pursuit of Net Zero. Meanwhile China has announced they are going to double their coal-fired electricity-generating capacity.

RWT
Reply to  Ron Long
November 28, 2022 3:38 pm

The bureaucracy is expanding to meet the needs of the expanding bureaucracy. – Oscar Wilde

Allan MacRae
November 28, 2022 1:59 am

In 2002, we published everything that really needed to be said about Climate and Energy:
1. “Climate science does not support the theory of catastrophic human-made global warming – the alleged warming crisis does not exist.”
2. “The ultimate agenda of pro-Kyoto advocates is to eliminate fossil fuels, but this would result in a catastrophic shortfall in global energy supply – the wasteful, inefficient energy solutions proposed by Kyoto advocates simply cannot replace fossil fuels.”
– by Sallie Baliunas (Harvard-Smithsonian), Tim Patterson (Carleton U), Allan MacRae (Queen’s U, U of Alberta)

The green strategy is to repeatedly saturate the media with alarmist falsehoods to scare the uneducated and the obtuse.

The alarmist scientists know they are lying; the imbeciles believe them.

Last edited 2 months ago by Allan MacRae
JamesB_684
Reply to  Allan MacRae
November 28, 2022 2:10 pm

The alarmists in academia, the corporate media, and governments, won’t be able to avoid the cascade failure that will occur from failed energy production. They seem to think they’re immune to consequences.

Peta of Newark
November 28, 2022 2:10 am

By whatever means, these clowns created a market that is completely upside down and back to front.
To try to encourage renewables, they made an energy market that encourages the highest price sellers – and surprise surprise, the low cost/price sellers simply jump onto the bandwagon.
While they wanted low-price cheap cheap cheap when buying gas on the spot market and imagined that Mr Putin would supply that forever. Spot prices being held down by US frackers.
He and Mr Trump knew that couldn’t go on forever, suggesting folks enter into long-term contracts.
But no – the train came off its tracks – actually derailed by its own driver via ‘sanctions’

Then they imagine they can fix it by punishing their own people with a new tax, pulled right out of nowhere, immediatly written into law and with payments being backdated.
How is that going to encourage anybody to even just carry on breathing, let alone go exploring, drilling, mining or building power stations?

Just like the GHGE, it is completely Arse-over-Tit
Absolute madness has taken hold

186no
Reply to  Peta of Newark
November 28, 2022 10:28 am

The Madness Of King George at that…

Dennis Gerald Sandberg
Reply to  Peta of Newark
November 28, 2022 3:19 pm

It might work for them. It worked for the State of California. They had long term contracts with Enron that they broke when the spot market price got cheaper. Everyone “knows” it was Enron’s criminal behavior that brought on their demise.(It was their response to getting screwed that got them in trouble). History is written by the biased corporate media and equally biased scholars. Facts don’t matter.

dk_
November 28, 2022 2:19 am

No reports of any country implementing such a tax have mentioned that the tax is retroactive, nor have the proceeds been promised to the people who will be hurt by government incompetance. The remaining inventory surplus to current production is sold off, and cash usually put into operations – drilling and refining – will be put to other acquisitions or returned as a dividend. Those quarterly profits that are upsetting the public won’t repeat next time reporting goes around, so just as with the windfall tax set by Carter in the 70’s, this is a meaningless gesture – a sop to the proles. It is a nice misdirection from the real incompetence and war mongering among the political class in Europe and North America.

MarkW
Reply to  dk_
November 28, 2022 7:52 am

The US Constitution explicitly bans ex post facto laws. Fortunately our courts have ruled that this includes changes to taxes.

Imagine making business decisions based on the existing tax code. Then years later some government lackey decides that government needs more money and raises tax rates retroactively, declaring that you owe more money. Do you have the money to pay these new taxes? Not his problem.

zzebowa
November 28, 2022 3:02 am

Lignite €82, oil €280, solar, wind and nuclear €130, they are clearly saying lignite plants can have less profits than wind, which can have less profits than oil.

Clearly, they want oil to survive.

It doesnot add up
Reply to  zzebowa
November 28, 2022 5:06 am

Please see my post detailing the cost issues.

bonbon
November 28, 2022 3:10 am

This began already in 2021 :
https://www.zerohedge.com/commodities/uk-energy-suppliers-request-emergency-support-government-weather-energy-crisis
and went wild when NATO destroyed the NordStream pipelines. Anyone can who expects normal business-as-usual when industrial terrorism roams is nuts. Backdating to that insane destruction is also nuts – it should be backdated to 2021 minimum.
The ENRON spot-price trading model at Amsterdam’s TTF and in Leipzig has sure tilted the Ranch at the Crooked EU. Even the UAE refused insisting on long-term contracts.

Meanwhile the ENRON chief investigator is now on the FTX case, which he said beats anything he saw at ENRON.

Joseph Zorzin
Reply to  bonbon
November 28, 2022 5:01 am

got any proof that “NATO destroyed the NordStream pipelines” ???

Maybe they did but as of yet there is no proof but give it a try.

It doesnot add up
Reply to  Joseph Zorzin
November 28, 2022 5:10 am

The Russians have just completed a pipeline survey using the vessel Nefrit. It spent a lot of time in the vicinity of the breaks in Swedish waters, and then tracked back along the pipeline route to the underwater col south of Gotland, where the water is shallower. I think they have been figuring out how the pipes might be repaired and replaced.

Joseph Zorzin
Reply to  It doesnot add up
November 28, 2022 5:25 am

Repair/replace but why? I doubt the EU nations are going to be purchasing that gas for a very long time.

bonbon
Reply to  Joseph Zorzin
November 28, 2022 7:38 am

And it is only getting colder….

bonbon
Reply to  Joseph Zorzin
November 28, 2022 7:37 am

The proof that Russia did it came out in French news :

Russian-passport-in-bubbles.jpg
MarkW
Reply to  bonbon
November 28, 2022 8:23 am

I’m not surprised that this report impresses you.

MarkW
Reply to  Joseph Zorzin
November 28, 2022 7:54 am

He doesn’t need proof. Accusing NATO or the US of every evil in the world has always been his gig.

Elliot W
Reply to  MarkW
November 28, 2022 9:26 pm

Isn’t that what Russian trolls get paid to do? Blame US and NATO for everything?

PCman999
Reply to  bonbon
November 28, 2022 8:28 am

Why would NATO have to waste a bomb on the pipeline when they are free to turn off the tap? Did you forget that Germany and most of the other countries desperate for gas are members of NATO?

Did you forget that Russia has been using every excuse in the book to progressively turn off the flow?

MarkW
Reply to  PCman999
November 28, 2022 3:35 pm

Putin acheives his goals, and gets his trolls to blame it on the victims.

ozspeaksup
November 28, 2022 3:28 am

the coal n gas guys can claim some price hikes due to cost to extract rising due to fuel inputs I guess wages sure didnt rise for most
as for the ripping off done by the NO cost extra to produce wind n pv scammers
yeah TAX em till it hurts;-) zero justification for any price rises bar outright greed

MarkW
Reply to  ozspeaksup
November 28, 2022 7:56 am

I see that like most socialists, you believe that nobody should be permitted to earn more profit than you deem proper.
On the other hand, when prices collapse and they are losing money hand over fist, that’s not your problem.

Dennis Gerald Sandberg
Reply to  MarkW
November 28, 2022 3:51 pm

President Reagan explained the progressive/socialist business model. If it moves, tax it. If it keeps moving, tax it some more. When it fails, subsidize it.

The problem for Germany, and the rest of Europe, is they’re running out of political tricks. What’s next? Cut wind and solar? Double down on wind and solar? Nationalize the electrical generation and distribution industry? Keep it simple, do what progressive’s do for every problem, everywhere, every time: Raise taxes. An endless clown show; too bad the ticket price keeps getting higher. Inflation sucks.

MarkW
Reply to  Dennis Gerald Sandberg
November 29, 2022 11:37 am

If it moves, tax it
If it continues to move, regulate it
If it stops moving, subsidize it

Duane
November 28, 2022 4:18 am

Regardless of whose ox is gored and by how much, it’s a slam dunk that government experts cannot do nearly as well as the markets in maximizing the efficiencies in allocating both supply and demand. The markets have already done an extraordinary job of dealing with the disruption in Russian natural gas supplies this year. Prices have fallen dramatically from where they were just three months ago, the NG storage levels in Europe are at the highest they’ve been for many years, and it is expected that a large surplus of stored NG will be carried over to the beginning of the 2023-2024 heating season.

Yet the folly continues of experts who believe that they can manage the economy better than natural markets, no matter how many times they are proved wrong.

Last edited 2 months ago by Duane
Rich Davis
November 28, 2022 4:22 am

Remarkable that the Grundgesetz (German constitution essentially) doesn’t protect against retroactive laws.

What is to stop the Green commie government from passing a retroactive law, going back to say 1949, criminalizing profits and then confiscating all assets of essentially every company?

How can any investment be justified when the ultimate tax rate is unknowable and subject to the whim of politics at any point in the future?

MarkW
Reply to  Rich Davis
November 28, 2022 7:58 am

Collapsing the free market has always been the goal of the socialists. That’s how they plan to justify nationalizing everything

186no
Reply to  MarkW
November 28, 2022 10:32 am

Not easy to nationalise 300 million firearms and associated ammunition in above and below the Lower 48…

MarkW
Reply to  186no
November 28, 2022 8:35 pm

Biden recently declared that there is no reason why any sane person would want to own a semi-automatic weapon.

After all if you are good, you shouldn’t need more than one shot. /sarc

Tom in Florida
November 28, 2022 4:25 am

I am not sure I have this right but….
The government sets policy that drives the cost of a commodity up. The people have a hard time paying for the higher prices of the commodity. The government steps in by taxing the earnings from the commodity sales to help the people pay for the higher prices of the commodity that the government policy created.
Is that correct?

_Jim
Reply to  Tom in Florida
November 28, 2022 5:42 am

re: “Is that correct?”

It would appear you have it correct. By my ‘read’ of what is taking place anyway …

MarkW
Reply to  Tom in Florida
November 28, 2022 8:00 am

As a side effect, they get to paint private companies as evil entities that gouge the poor defenseless citizens, while painting government as the savior of the masses.

auto
Reply to  MarkW
November 28, 2022 2:57 pm

And take a little out of the middle.
Or skim 10% off the top – expenses, you know.
Or both.

Result – more ‘Civil Servants’, more wealthy bankers and advisers.
Net less money for the great unwashed, the useless eaters, you and me.

Auto, wondering whether I should have become a civil servant.
At least I might have an MBE ……

Dennis Gerald Sandberg
Reply to  MarkW
November 28, 2022 3:55 pm

And the majority of voters believe the government, and so it goes.

michel
November 28, 2022 5:15 am

Meanwhile in other news the UK is now implementing its emergency demand reduction protocol. It seems the wind is not blowing in the North Sea, and the French are not able to supply either.

Wind as I write is doing 1.3GW, or about 3% of demand. Gas is doing 21.47GW, or 56%. UK demand is around 40GW, more in the three winter months, a bit less in summer.

The utter insanity of this energy policy, if you can even call it an energy policy! And its not even real winter yet. The chances of rolling blackouts in December, January and February must be very high.

And, icing on the cake, the fanatics of Just Stop Oil are now proceeding to block roads in central London.

R Taylor
November 28, 2022 5:48 am

So, the solution is to fire the policy bazookas at the regulatory firewall.

Tom Abbott
November 28, 2022 6:16 am

From the article: “The more than 200-page-long law proposal”

Bureaucratic Nirvana.

Expect higher prices for electricity, and shortages of electricity.

It’s amazing to watch the EU bankrupt itself over unreasonable fears about CO2, seemingly unaware that it is doing so. Their only solution is to interfere in the marketplace, which will only exascerbate the situation.

They should have let the Market decide. Had they done so, they wouldn’t be building windmills and solar, and they wouldn’t be going bankrupt, hungry and cold.

It appears the current batch of Western politicians, with a few exceptions, are particularly clueless about the direction to take.

MarkW
Reply to  Tom Abbott
November 28, 2022 10:34 am

The entire US Constitution is only a few pages long.

auto
Reply to  MarkW
November 28, 2022 3:01 pm

Wasn’t there an internet meme that the US Constitution was [IIRC] nine pages; but the EU[SSR] regulations for marketing cabbages were 143 [or similar] pages?

Auto – possibly misremembering the numbers.
And not sure there really are EU Rules for ALL Cabbages, rather than for green ones, more for white ones, and again more for red ones, and probably extra rules and regulations for other ones.

fdemaris
November 28, 2022 6:27 am

130€ per MW-hr is (calculator buttons) about 13.5 US cents per kW-hr. The bottom tier in my part of California is double that for the trivial usage they call baseline.

John the Econ
November 28, 2022 6:35 am

If only there was a field of study dedicated to predicting how this policy will work out.

Nik
November 28, 2022 9:43 am

Windfool Taxes.

Smart Rock
Reply to  Nik
November 28, 2022 11:35 am

Wind fail taxes?

n.n
November 28, 2022 11:34 am

A trillion green[backs] redistributed to reach flatline.

JimmyV1965
November 28, 2022 12:14 pm

The west had buggered up the energy market so badly now, the windfall tax will have little impact on development. Fossil fuel producers won’t invest in production in the west even without the tax. Western govts have guaranteed that with regulations already. And wind and solar were never about profits. They are subsidy mining outfits, and that won’t change either.

JC
November 28, 2022 1:54 pm

Utilities, Health Care, Food, Fuel are levers of central control and social engineering and leveraging vote of those dependent of government socialism. Meanwhile, big energy lobbies on the state level for carbon tax–money for government power and for regulation to prevent the average home owner from going off the tax grid. Germany is just showing us how it is done. Carbon tax to pay for free electricity stations. Meanwhile gas is 4 bucks in PA and heating oil even higher. It’s time for homeowners to be empowered with an affordable, efficient and effective home electrical storage system to side step the the tax grid, to grow more of our own food and to approach the health care drag nets with scrutiny and knowledge.

Last edited 1 month ago by JC
Dennis Gerald Sandberg
November 28, 2022 2:04 pm

Germany Energiewende

Starting in 2000, Germany enacted a national Feed-In Tariff (FIT) that propelled the country to become the world’s clean energy leader.

Sep 16, 2019 — Feed-in tariffs will run out for 4 GW of onshore wind power followed by another 2.3- 2.4 GW each year until 2025
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November 24, 2022 – (Bloomberg) — Germany has set out its plan to claw back 90% of the earnings from some clean power generators as the government seeks funding for its consumer aid package.

Dennis Gerald Sandberg
Reply to  Dennis Gerald Sandberg
November 28, 2022 4:07 pm

oops see above, Sep 16, 2019 – this got deleted: Beginning in 2021 (then text “Feed-in tariffs will run out….

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