Germany Plans Huge Windfall Tax On Green Energy Producers

The German authorities are set to introduce a windfall tax of 90% for some clean power generators in an effort to fund a previously approved consumer aid package, according to a draft law seen by Bloomberg.

Under the proposed legislation, which is scheduled to be voted on in the upper house of the country’s parliament on December 16, the government will skim earnings above €130 per megawatt-hour for solar, wind and nuclear.

The tax will reportedly be applied to power producers based on the fuel they use, with lignite plants to be taxed on earnings above €82 per megawatt hour, while for oil plants the threshold will be €280. The policy will apply for ten months, backdated from September 2022 to June 2023 and could be prolonged until the end of 2024.