A government compromise in Berlin envisions radical changes to the country’s renewables subsidy approach and details a fleet of backup power plants to underpin the country’s coal exit.
Designed in the late 1990s, Germany’s renewable energy law guarantees wind turbine and solar panel owners a 20-year high price for electricity fed into the grid. The country quickly became famous for its pioneering Energiewende.
This paradigm is on the brink of change, the government announced on Friday (5 July), against the backdrop of fiscal strain and an identified need for backup power generation.
“Our goal is an electricity market that ensures a secure, affordable and greenhouse gas-neutral supply of electricity with at least 80% from renewables,” reads the coalition government’s internal agreement.
To that end, two fundamental principles of the renewables subsidy scheme will be changed as of 2025.
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Firstly, there is no remuneration for power produced during times of negative prices when there is already excess power being supplied to the grid. The move pulls forward an EU requirement by two years.
Secondly, there is a paradigm shift in how renewables are supported by the state.
“The expansion of new renewable energies is to be switched to investment cost subsidies,” the agreement reads, adding that this should be done “to allow price signals to have a distortion-free effect.”
Currently, government support is linked to electricity production, ensuring that renewable developers can ensure a minimum revenue level for every unit of power produced.
From guaranteed earnings to a lump sum investment subsidy is a leap – “The experiment of a radical change to investment cost subsidies contains the risk of market uncertainty,” said renewables lobby group BEE on Friday.
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For the liberal FDP (Renew), the smallest government party, making the change was long coming.
“I am delighted that we are starting to phase out the renewables subsidy scheme [EEG],” said MP Michael Kruse, the FDP’s energy spokesman, in an accompanying press release.
The free-market party’s opposition to the scheme is in part due to its high cost—subsidising renewables will cost “€17 billion, that is the current calculation for next year,” said FDP Finance Minister Christian Lindner at a press conference in Berlin on Friday.
Not all are happy with this agreement to phase out the traditional mechanism, even within the government.
“From today’s perspective, it is neither feasible nor, strictly speaking, intended to subsidise investment costs, rather only as a test model or laboratory,” said MP Nina Scheer, the left-of-centre SPD party’s energy spokeswoman, in emailed comments to Euractiv. The SPD are a member of the government coalition.
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“In my opinion, the model contains obvious investment risks. These must be avoided at all costs,” she added.
The transition would need to happen in the coming years to have a meaningful effect, given that the government similarly vowed to stop supporting renewables once coal is no longer being burned for power – 2038 at the latest.
Safeguarding the coal exit
A second major milestone in the German energy transition will be the construction of new gas power plants – some of which can run on hydrogen.
“The construction of new power plants will secure the coal phase-out,” explained Robert Habeck, minister of economy and climate action, on Friday. The coal exit for 2030, which is “ideally” envisioned by the government, is largely considered to be unattainable.
Within the year, Berlin hopes to tender five gigawatts (GW) of new gas power plants for immediate construction, abandoning plans for a fully hydrogen-ready fleet. This would be followed by another five GW of plants that must run on hydrogen, but only from the eighth year of their operation. Two GW of old gas plants should be retrofitted.
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Half a GW of dedicated first-day hydrogen power plants will also be built, alongside another half GW of long-term energy storage facilities.
The plants will be put into a “comprehensive, technology-neutral capacity mechanism, which will be operational from 2028.”
Andreas Jahn, senior advisor at clean-energy think tank RAP, explains that the plan “represents an important compromise that secures the transformation of the German electricity system.”
All of this will require market subsidies that have been “in principle” greenlit by Brussels.
“Following intensive discussions between the Commission services and the German authorities,” the two agreed on “a way forward,” a Commission spokesperson told Euractiv.
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“Germany plans to launch the first competitive bidding process at the end of 2024/in early 2025,” they added.
[Edited by Donagh Cagney/Alice Taylor]
Read more with Euractiv
2024 could be world’s hottest year as June breaks records
Last month was the hottest June on record, the EU’s climate change monitoring service said on Monday (8 July), continuing a streak of exceptional temperatures that some scientists said puts 2024 on track to be the world’s hottest recorded year.
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My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
