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.

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