Germany Is Preparing A Windfall Tax For Solar And Wind Generators

Ah, yes. The sweet smell of saving the planet with "green" energy while getting to rake in even more taxes...nothing like having your cake and eating it too. 

Such is the case in Germany, where the country is getting ready to "table a €130 per megawatt hour cap on the earnings of wind, solar and nuclear generators", according to ReNews, citing Bloomberg. 

Draft law indicates that the German government is planning on "reclaiming" some of the profits belonging to electricity companies in order "to fund a €54bn consumer aid package" that likely wouldn't be necessary if Germany's power grid was independent from the get-go. 

Instead, the country - which famously relies on Russia for energy and has shunned most nuclear power plant plans for the foreseeable future - apparently hopes to spur more supply by clamping down on the earnings of energy companies...and yes - even the companies generating power through "green" means. 

"It's a bold strategy, Cotton. Let's see if it pays off for them..."

The new law "is scheduled to pass the upper house of the German Parliament on 16 December and go into effect on 1 January," the report says. It'll apply for 10 months and will be backdated to the beginning of September 2022. 

"Germany joins a growing number of European countries preparing to set their own national caps on renewable energy earnings that fall below the European Commission’s suggested levy of €180/MWh," ReNews wrote. 

While the measures are only intended to last until June 2023, the report notes they "could be" extended until the end of 2024 - which, as we know all to well, is government speak for "will likely be extended indefinitely and hiked annually..."

By Zerohedge.com

More Top Reads From Oilprice.com:

• Europe Races To Stock Up On Russian Diesel Ahead Of Embargo
• Biden Quietly Approved 2 Million Bpd Texas Oil Terminal
• Oil Stocks Are Showing A Peculiar Disconnect From Crude Prices