The most serious element in the draft law is the move to shift responsibility for the amount of renewable electricity eligible for support from parliament to the ministries.
This had led to fears within the sector that investors will be subject to short-term ministry decisions that will undermine security of planning and financing of projects.
In a statement about the decision, the federal wind-energy association (Bundesverband Windenergie) said: "The federal government's hurriedly implemented turnaround to increasingly rely on renewables last summer is now to be abruptly and fully halted."
Hermann Albers, the association's president said: "This undermines security of investment, until now a key to the Act's success. The consequences are fatal. Renewables investment will significantly decrease or stop altogether."
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