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German agreement on feed-in-tariffs

Germany has a long succesful history of developing renewable power generation. Due to competitive fixed power purchase prices (feed-in tariff) Germany has become one of the leading nations in renewable energy use. By 2007 Germanyy has installed largest amount of wind power world-wide (~27% of world capacity) as well as photovoltaic (~65% of world capacity). These feed-in tariffs are supposed to decrease, but the levels have been unclear. According to Reuters the coalition reached an agreement on new feed-in tariffs for renewable energy yesterday evening. This morning (Friday 2008-05-30) it is being reported that the cuts for the photovoltaic sector will be 8% for 2009 and 2010, 9% for 2011. This is considerably below the aggressive cuts to feed-in tariffs demanded from some quarters.

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