Germany Windfall Tax Hurts Renewables in Short Term: Study (1)

The proposed windfall tax on Germany’s power companies would cause significant short-term losses in revenue for renewable-energy producers, according to a study released Wednesday.

However, the levy’s short lifespan and moderate upper limits mean its impact on long-term profitability is manageable, and those clean-energy investments still would make money, UK-based Aurora Energy Research said in the analysis.

The government proposal would siphon as much as 90% of the profits made above a certain level by power companies selling on the spot market, with different limits for the futures market. The tax was supposed to start this month and last through ...