Germany demands changes in EU renewables trading

BERLIN (Reuters) - Germany is demanding changes in a plan to enable European Union member states to trade renewable energy, arguing that the method proposed by Brussels could endanger its own successful guaranteed price system.

A senior German government source said Berlin accepted the principle that EU countries should be able to trade certificates in power produced from sources such as wind, waves, hydro-electric dams, solar and photo-voltaic energy.

The European Commission proposed that countries such as Germany and Spain that have so-called "feed in tariff" systems guaranteeing access to utility networks and a stable price to alternative electricity generators should be able to opt out of the trading system if they chose.

But the government source said this could create uncertainty for German producers and utilities, as they might face legal action for denying free circulation of goods.

"We have doubts that this is a way we can go, because we have a fear that this system could create a lot of trouble and inconsistency," the source said. "We propose not an opt-out but an opt-in system. Those countries with a feed-in tariff can go their own way."

Berlin says its system has proved its effectiveness because Germany already gets more than 14 percent of its electricity from renewable sources and the cost is half the price of green power produced in Britain or Italy.

The German government initially endorsed the Commission proposal, which it had lobbied hard to influence, saying it had ensured Germany's successful system was not undermined.

However, legal experts commissioned by the Environment Ministry and alternative power generators have since concluded that the Commission proposal is on shaky legal ground.

A Commission spokesman was not immediately available for comment.

(Reporting by Paul Taylor; Editing by Catherine Evans)