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Tag: Curtailment

All Articles about Curtailment

Illustration of rooftop solar panels under storm clouds, symbolizing the risks of subsidizing small-scale residential PV – inflexible and potentially destabilizing – compared to more efficient and controllable utility-scale solar farms.

Large-scale vs. small-scale solar: Why residential rooftop solar may be threatening the energy transition

Germany has reached a record level in the installation of solar systems with 15 GW in 2023. However, problems are now beginning to emerge with rooftop solar.

Surreal illustration of a masked figure in front of a windmill, symbolizing the negative impact of government price caps and taxes on green power producers, with curtailment risks and market destruction depicted.

How Price Caps (Taxes) will lead to the Destruction of Green Power

The German government plans to introduce a price cap (essentially a tax) for energy producers. This will likely lead to the curtailment of valuable green energy production at times of positive prices (worst case). Best case it will introduce a minimum price floor in markets exactly at the level of the marginal tax rate.