Banks criticize the federal government's planned energy laws

CDU Economics Minister Reiche wants to reverse the traffic light coalition's energy policy. However, she is committed to the energy transition. But the current plans won't work, banks complain in a letter to the minister.

According to a media report, several banking institutions have criticized the federal government's planned energy laws. In addition to solid planning, the success of the energy transition "crucially depends on the broad provision of financing," says the Pro-Newsletter Energy and Climate from the news magazine Politico in a letter to Federal Minister of Economics Katherina Reiche and Federal Network Agency boss Klaus Müller.

The letter sent on Monday was signed by the Financing Advisory Board of the Federal Wind Energy Association, which includes representatives from Commerzbank, Deutsche Kreditbank, GLS, LBBW, Hypovereinsbank as well as various savings banks and Volksbanks, Politico reported. Specifically, the authors criticize that the new energy laws - such as the planned EEG amendment and the planned network package - could lead to additional and unquantifiable cost and revenue risks.

In particular, there are fears that in onshore wind power projects the level of debt, the terms and the risk costs will deteriorate, while the equity requirements increase. According to Politico, the authors of the letter blame several measures from the federal government's projects - including the intended limitation of the active power of systems.

This limitation would not only affect future projects, but also projects that already had approval and a contract in the tendering process - "and thus a fixed basis for calculation," according to Politico in the letter.