German Renewable Sector Warns Proposed Reform Threatens Climate Targets

The regulatory uncertainty has already claimed its first casualty. Grüüün, a renewable electricity provider launched in 2024, recently announced it would cease servicing 200,000 residential customers. The company explicitly blamed the proposed EEG 2027 overhaul and rising grid charges for disrupting its pricing structure, arguing that government policy is steering the energy transition in a counterproductive direction.

Industry groups, including the Bundesverband Solarwirtschaft (BSW-Solar) and the Federal Association for Renewable Energy (BEE), argue that limiting priority access for projects and cutting curtailment compensation creates prohibitive investment barriers. BSW-Solar chief executive Carsten Körnig warned that these measures threaten private rooftop solar and large-scale parks alike, potentially imperiling tens of thousands of industry jobs.

Economic projections underscore the scale of the risk. Analysis from the Society for Economic Structural Research (GWS) suggests that if the current reform package passes in its present form, potential sector investments by 2035 could drop from 79 billion euros to 52 billion euros. Similarly, projected job creation could be slashed from 270,000 new positions to just 83,500. As the legislation moves through Parliament, these associations are pushing for substantial revisions to protect the viability of citizen-owned energy projects and maintain the momentum of Germany's green infrastructure expansion.