Germany has announced a package of measures to fight high energy prices, including a price cap for non-gas producers like renewables. While the logic of not paying the currently sky-high gas-driven prices for generation that largely has fixed costs is not absurd, the way it is done is not very smart and is confiscatory. The original error was not to impose fixed prices on fixed-cost generation in the first place. The German tariffs for renewable energy take the form of … read more »

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