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November 08, 2013 AT 5:04 AM
According to a draft agreement recently obtained, German Chancellor Angela Merkel's conservatives and the Social Democrats have agreed to slash feed-in tariffs (FIT) for wind power in many regions where wind energy production is high. The changes in the FIT, the lifeblood for renewable energy until prices fall to market levels, will affect only new plants. It said the new government that the conservatives and SPD hope to form later this month will also examine the exemptions that about 2,000 companies currently receive from the renewable energy surcharge that has been widely criticized.