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German States Advance Renewable Energy Laws to Boost Local Support

Hesse and Saxony propose financial participation and compensation mechanisms to address resistance to wind and solar projects.

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Overview

  • Hesse's Green Party has introduced a draft law mandating profit-sharing from renewable energy projects with municipalities to enhance local acceptance.
  • The Hesse bill includes a 0.4 ct/kWh automatic levy if municipalities and investors fail to reach voluntary agreements.
  • Saxony's CDU/SPD coalition has proposed delaying the 2% land-use target for wind energy until 2032 while introducing a 0.1 ct/kWh resident payment to improve public buy-in.
  • Hesse anticipates municipalities earning an average of €64,000 annually per wind turbine under the proposed model, funding local services like schools and parks.
  • Both draft laws are now under parliamentary debate, with Hesse's Landtag discussing the bill this week and Saxony's proposal awaiting cross-party consensus.